BC Advantage - 2024 Issue 2

The Uniform Commercial Code and Its Relation to Hardware, Software, and Related Services Used by Healthcare Sector Participants

As set forth in 45 CFR § 164.502(a)(3), a business associate may not utilize protected health information (PHI) in any way that would violate the Health Information Portability and Accountability Act of 1996 (HIPAA) and the related Privacy Rule. But what if a covered entity contracts with a business associate that provides technology managed services – specifically related to the maintenance and/or transmission of PHI, utilizing a combination of hardware, software, and related services – and a payment dispute arises? As the Department of Health and Human Services (HHS) has stated, it is improper for a business associate...

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