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HIPAA Business Associate Agreement for Digital Health Companies

By BAA Generator Editorial  ·  Updated Apr 19, 2026  ·  5 min read

Key Takeaways

Direct answer: Most digital health companies are HIPAA business associates — you must sign BAAs with your covered entity clients (hospitals, health plans) AND obtain BAAs from your own vendors (cloud infrastructure, analytics, customer support tools) that touch PHI. Both sides of this obligation are required under 45 CFR § 164.504(e).

Digital health companies occupy the middle layer in HIPAA's three-tier structure: covered entities (hospitals, clinics, health plans) engage digital health vendors as business associates, and those digital health companies in turn use their own infrastructure vendors as sub-business-associates. Understanding both sides of this chain is essential for HIPAA compliance.

Are You a Covered Entity or a Business Associate?

This is the foundational question for any digital health company's HIPAA strategy.

If you are a business associate, you are directly subject to HIPAA's Security Rule and Breach Notification Rule, and must comply with the terms of any BAA you sign with a covered entity client. See our guide on when a HIPAA BAA is required for more detail.

The BA → Sub-BA Chain: Your Two-Sided Obligation

As a business associate, you have obligations flowing in two directions:

Incoming BAAs: Clients Sign BAAs With You

When a covered entity (a hospital, health plan, or physician group) deploys your digital health product and your product accesses PHI, the covered entity must execute a BAA with your company before sharing any patient data. You should have a standard BAA template ready to provide to customers, and your sales and legal teams should ensure every covered entity customer executes a BAA as part of the contract process.

Outgoing BAAs: You Sign BAAs With Your Sub-Vendors

Under HIPAA's Omnibus Rule, when you (as a business associate) engage a subcontractor that will access PHI, that subcontractor is a downstream business associate directly subject to HIPAA. You must execute BAAs with each sub-vendor whose platform touches your customers' PHI. This includes your cloud infrastructure, database providers, analytics tools, customer support platforms, and error monitoring services.

A breach at any sub-vendor is your problem too — the covered entity will look to your BAA for indemnification, and OCR may investigate your compliance as well as the sub-vendor's.

Cloud Infrastructure BAAs

The good news for cloud infrastructure: all three major cloud providers offer BAAs:

Analytics and Observability Tool BAAs

This is where digital health companies most frequently introduce unprotected PHI into non-HIPAA-compliant platforms:

Review our checklist on whether your vendor signs BAAs before deploying any new analytics or observability tool in a PHI-touching environment.

Customer Support and CRM Tools

Customer support platforms (Zendesk, Intercom, Salesforce) that receive support tickets or conversations containing PHI require BAAs. Salesforce offers BAAs on enterprise health cloud plans. Zendesk and Intercom have BAA options. Review carefully — standard consumer-tier contracts typically do not include BAA provisions.

Vendor BAA Available? Notes
AWSYesFree via AWS Artifact; only HIPAA-eligible services covered
Google Cloud (GCP)YesVia Cloud Data Processing Addendum
Microsoft AzureYesVia Microsoft Trust Center
MixpanelNoDo not send PHI to Mixpanel
AmplitudeEnterprise onlyContact enterprise sales
Segment (Twilio)Enterprise onlyVerify scope directly
DatadogEnterprise plansRequires HIPAA configuration
SentryBusiness plan+Verify error events exclude PHI

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Frequently Asked Questions

Is a digital health app a HIPAA covered entity or business associate?

Most digital health apps are business associates. A covered entity is a healthcare provider, health plan, or clearinghouse. A digital health company that provides software or services to covered entities is typically a business associate. As a BA, you must sign BAAs with clients AND get BAAs from your sub-vendors that touch PHI, per 45 CFR § 164.504(e).

What cloud vendors do digital health companies need BAAs with?

AWS, Google Cloud Platform, and Microsoft Azure all offer BAAs (Business Associate Addendums) for services used to process PHI. Ensure you execute the BAA and use only HIPAA-eligible services. For analytics, Mixpanel does not sign BAAs — avoid sending PHI to Mixpanel. Amplitude and Segment have enterprise BAA options.

Does a wellness app that doesn't bill insurance need a HIPAA BAA?

It depends. A purely consumer wellness app with no covered entity relationship is generally not subject to HIPAA. But if your wellness app is deployed by an employer health plan, hospital, or health insurer as a benefit, you are functioning as a business associate of that covered entity and HIPAA — including BAA requirements — applies.

What is the BA to sub-BA chain in digital health?

When you (a business associate) engage a subcontractor that accesses PHI, that subcontractor is a downstream business associate directly subject to HIPAA. You must execute BAAs with each sub-vendor touching PHI, creating a chain: covered entity → your company → your vendors. A breach anywhere in this chain can result in HIPAA liability for your company.