Binding law — in force
Protected health information may go to an AI vendor only under a business associate contract (HIPAA)
Under 45 CFR 164.502(e) a covered entity may let a business associate create, receive, maintain, or transmit protected health information on its behalf only after obtaining satisfactory assurance, documented in a written contract that meets 164.504(e), that the business associate will safeguard it; a business associate needs the same from its subcontractors. 164.504(e)(2) lists what the contract must say, including permitted uses, no further disclosure, safeguards, breach reporting, flow-down to subcontractors, and return or destruction at termination. An AI model, transcription, or embedding vendor that processes PHI for a covered entity or business associate fits the pattern the definition of business associate describes (160.103). Detect PHI flowing to a model API with no sign of a business associate agreement, a covered endpoint, or de-identification.
us-hipaa-privacy.ai-vendor-business-associate-contract · 45 CFR 164.502(e)(1) · official source · jurisdictions: US