Three affiliates of a medical billing service can proceed with a third-party beneficiary claim in a breach of contract lawsuit between their parent and a medical software company, the Delaware Court of Chancery has ruled. The court held the affiliates meet the definition of “business associate” under the Health Insurance Portability and Accountability Act, or HIPAA.
Vice Chancellor Donald F. Parsons Jr. issued the decision in United Health Alliance v. United Medical, a case that has been pending in the Chancery Court since 2012 and has generated multiple opinions.
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