Are Application Developers Business Associates?

FactsThere always seems to be a gray area when it comes to programmers and software developers.  Are Application Developers Business Associates?  This is not such an easy question to answer.  If you are an app vendor, and you are not already a covered entity, you should consider the following questions in determining whether or not you may be a business associate – i.e., an entity that creates, receives, maintains or transmits protected health information (PHI) on behalf of a covered entity or business associate:

 

 

  • Does your health app create, receive, maintain, or transmit identifiable information?
  • Who are your clients? How are you funded?
  • Are your clients covered entities? e.g., hospitals, doctor’s offices, clinics, pharmacies, or other health care providers who conduct electronic transactions; insurance issuers; health or wellness program related to a health plan offered by an employer
  • Were you hired by, or are you paid for your service or product by, a covered entity? Or another business contracted to a covered entity?
  • Does a covered entity (or a business associate acting on its behalf) direct you to create, receive, maintain or disclose information related to a patient or health plan member?

Q&A

Question:  Consumer downloads a health app to her smartphone. She populates it with her own information. For example, the consumer inputs blood glucose levels and blood pressure readings she obtained herself using home health equipment.

Answer:  No. Developer is not creating, receiving, maintaining or transmitting protected health information (PHI) on behalf of a covered entity or another business associate. The consumer is using the developer’s app to help her manage and organize her information without any involvement of her health care providers.

Question: Consumer downloads a health app to her smartphone that is designed to help her manage a chronic condition. She downloads data from her doctor’s EHR through a patient portal, onto her computer and then uploads it into the app. She also adds her own information to the app.

Answer:  No. Developer is not creating, receiving, maintaining or transmitting protected health information (PHI) on behalf of a covered entity or another business associate. Instead, the consumer obtains health information from her provider, combines it with health information she inputs, and uses the app to organize and manage that information for her own purposes. There is no indication the provider or a business associate of the provider hired the app developer to provide or facilitate this service.

Question:  Doctor counsels patient that his BMI is too high, and recommends a particular app that tracks diet, exercise, and weight. Consumer downloads app to his smartphone and uses it to send a summary report to his doctor before his next appointment.

Answer:  No. Developer is not creating, receiving, maintaining or transmitting protected health information (PHI) on behalf of a covered entity or another business associate. The doctor’s recommendation implies her trust in the app, but there is no indication that the doctor hired the app developer to provide services to patients involving the handling of PHI. The consumer’s use of an app to transmit data to a covered entity does not by itself make the app developer a BA of the covered entity.

Question:  At direction of her provider, patient downloads a health app to her smart phone. Provider has contracted with app developer for patient management services, including remote patient health counseling, monitoring of patients’ food and exercise, patient messaging, EHR integration and application interfaces. Information the patient inputs is automatically incorporated into provider EHR.

Answer:  Yes, the developer is a business associate of the provider, because it is creating, receiving, maintaining and transmitting protected health information (PHI) on behalf of a covered entity. In this case, the provider contracts with the app developer for patient management services that involve creating, receiving, maintaining and transmitting PHI, and the app is a means for providing those services.

Above are just a few scenarios to help you determine if your application developer is a Business Associate or not.  For more information, visit the HHS.gov website.