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what exactly is a business associate agreement the business associate agreement or baa is a mandatory requirement of hipaa legislation designed to safeguard protected health information the business associate relationship could be either between a business associate and a covered entity or between a covered entitys business associate and its subcontractor this approach creates a chain of shared responsibilities and a bond of liability between all parties the business associate agreement concerns how any health information is used maintained or transmitted between the covered entities and the business associates it is a binding agreement between the covered entity such as a medical group and any third party such as an i t hosting partner the va is a combination of guarantees given by the third party regarding service level agreements the response times for incidents and the expectations for disaster recovery it outlines the permitted uses and disclosures of phi and clearly defines the