In the OCR guidance that was issued in December, the very last question in 
the section on BA's says this:

Q:      Is a software vendor a business associate of a covered entity?

A:      The mere selling or providing of software to a covered entity does 
not give rise to a business associate relationship if the vendor does not 
have access to the protected health information of the covered entity.  If 
the vendor does need access to the protected health information of the 
covered entity in order to provide its service, the vendor would be a 
business associate of the covered entity.  For example, a software company 
that hosts the software containing patient information on its own server or 
accesses patient information when troubleshooting the software function, is a 
business associate of a covered entity.  In these examples, a covered entity 
would be required to enter into a business associate agreement before 
allowing the software company access to protected health information. 
However, when an employee of a contractor, like a software or information 
technology vendor, has his or her primary duty station on-site at a covered 
entity, the covered entity may choose to treat the employee of the vendor as 
a member of the covered entity’s workforce, rather than as a business 
associate.  See the definition of “workforce” at 45 CFR 160.103.

I would say the need for a BAA then depends on the details of what you do for 
your customers.  If you are a software retailer, like CompUSA or something 
like that, I'd argue no BAA is necessary.  If you provide on site service and 
troubleshooting, or can remotely access the CE database, then I'd say you do 
need a BAA.

I don't think a TPA is appropriate.  My understanding is that this is a 
device from the Transaction and Code Set Standards and would only be used 
between parties that are conducting a covered transaction.

COT agreements I believe are a creature of the long awaited Security Rule and 
since that is not finalized I don't think we can say if a COT is appropriate 
or not.

Noel Chang


--
Open WebMail Project (http://openwebmail.org)


---------- Original Message -----------
From: [EMAIL PROTECTED] (Jim Randolph)
To: "WEDI SNIP Privacy Workgroup List" <[EMAIL PROTECTED]>
Sent: Thu, 23 Jan 2003 11:39:07 -0500
Subject: RE: to sign or not to sign

> Let me carry this a step further.  We are a software vendor that has
> received BACs, TPAs and Chain of Trust agreements from different customers.
> As a vendor to this particular customer base we are exposed to PHI 
> but never manipulate it in any way.  Our support personnel do review 
> setup configurations, billing problems or DB issues; but don’t do 
> anything to PHI. Attorneys and consultants are advising our 
> customers so differently that no matter what, we end up being “the 
> evil vendor.”  Some of the BACs we receive are rather ridiculous,
>  like requiring us to assume financial liability if our customer has 
> any HIPAA problems in the future.
> 
> The question for the group is: What is required in this scenario a 
> BAC, TPA or COT?
> 
> Jim Randolph
> The Echo Group
> 
> -----Original Message-----
> From: Traci Winter [mailto:[EMAIL PROTECTED]]
> Sent: Wednesday, January 22, 2003 3:49 PM
> To: WEDI SNIP Privacy Workgroup List
> Subject: to sign or not to sign
> 
> OK so the next question is do we sign these BACs or just put them in 
> the round file. Your answers reflected what my impression was, but I 
> wanted reinforcement.
> 
> Thanks,
> Traci Winter
> ---
> 
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