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a common question we receive at PCI Hippa is who is considered a business associate here are three questions to help you determine who is a business associate first do they require disclosure of protected health information Phi to provide their services second are they your employee and finally are they a covered entity or someone who is only working with you to treat patients if you answered yes to question number one and no to questions 2 and three then they are most likely a business associate for example lawyers accountants Consultants practice management software companies medical transcribers and third-party administrators are all business associates they all are required to handle Phi to perform their services under Hippa a covered entity and their business associates are required to enter into contracts called business associate agreements the agreement must describe the permitted uses of Phi state that the business associate will not use the Phi other than what is permitted un