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A Business Associate Agreement (BAA) is a mandatory requirement of HIPAA legislation that safeguards protected health information. It establishes a chain of shared responsibilities and liability between parties, including covered entities, business associates, and subcontractors. The BAA governs how health information is used, maintained, and transmitted. It is a binding agreement between a covered entity (e.g. medical group) and a third party (e.g. IT hosting partner) and includes guarantees on service level agreements, incident response times, disaster recovery expectations, and permitted uses/disclosures of PHI.