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2. If our business associate uses or discloses PHI in an inappropriate
way, will we be held responsible?
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No, but with an exception. A healthcare provider will not be
held responsible for a business associates' unauthorized use or
disclosure of PHI, unless the healthcare provider learns of the
violation and fails to take action. Upon learning of the violation,
the healthcare provider must take reasonable steps to cure the
violation and, if such steps were not successful, the healthcare
provider must (i) terminate the business associate agreement,
if feasible; or (ii) if termination is not feasible, report the
problem to DHHS.
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