Guide · HIPAA
HIPAA does not ask where you are. It asks what you do with the data.
An Indian company that handles US patient data for a hospital, insurer or health-tech client is usually a HIPAA business associate — whether or not anyone has sent it a contract to sign. This guide sets out when that happens, what the regulation then asks of you, and how India’s own law applies to the same data.
Reviewed 7 November 2026 · 11 sources cited
The short answer
An Indian IT, BPO or health-tech vendor that creates, receives, maintains or transmits US patients’ protected health information for a covered entity — or for another vendor that does — is a HIPAA business associate. The Security Rule then applies to it directly: a documented risk analysis, administrative, physical and technical safeguards, a business associate agreement, and breach notice to the client within 60 days. Start with the risk analysis.
Status
You become a business associate by doing the work.
HIPAA’s definition of a business associate turns on conduct. A person who, on behalf of a covered entity, creates, receives, maintains or transmits protected health information is one, and so is a subcontractor that does the same on behalf of a business associate. Nothing in the definition depends on nationality, on where the servers are, or on whether a business associate agreement has been signed.
That is how Indian companies end up inside HIPAA without having set out to: a development shop with production access to a US clinic’s patient portal, a BPO handling claims or medical coding, a managed-services provider with administrator rights on a hospital’s servers, a SaaS company whose product stores visit notes, a data team cleaning records for an analytics client. Each of them maintains or receives protected health information on someone else’s behalf. The subcontractor rule matters most in India: if your client is itself a vendor to a US hospital, you are a business associate of that vendor.
Once you are one, the Security Rule applies to you in its own right — 45 CFR 164.302 says a covered entity or business associate must comply with its standards. The business associate agreement is the contract that records this and lets the client terminate if you breach it; it is not the thing that switches the obligations on. In practice the agreement is also how a US client holds an Indian vendor to account, which is why the first serious security questionnaire usually arrives attached to one.
The regulation
What HIPAA asks of a business associate, rule by rule.
The provisions that matter most to a vendor, from the regulation text, with what each means for an Indian team.
| Requirement | Where it is | What it means for you |
|---|---|---|
| Comply with the Security Rule | 45 CFR 164.302 | The safeguards apply to you directly, not only through your client’s contract. |
| Risk analysis | 45 CFR 164.308(a)(1) | An accurate and thorough assessment of the risks and vulnerabilities to the electronic PHI you hold — written, dated and kept current. The document clients and auditors ask for first. |
| Administrative safeguards | 45 CFR 164.308 | Risk management, a security officer, workforce training and sanctions, access management, incident procedures, contingency planning and periodic evaluation. |
| Physical safeguards | 45 CFR 164.310 | Facility access, workstation use and security, and device and media controls — including laptops at home and shared offices. |
| Technical safeguards | 45 CFR 164.312 | Access control, audit controls, integrity, person or entity authentication, and transmission security. |
| Agreement terms and incident reporting | 45 CFR 164.314 | Your agreement must commit you to comply, to flow the same terms down to your subcontractors, and to report any security incident you become aware of to your client. |
| Subcontractors | 45 CFR 164.502(e) and 164.314 | Before a subcontractor handles the PHI — a cloud host, a support vendor, a freelancer — you need its written assurances in an agreement of its own. |
| Breach notification to your client | 45 CFR 164.410 | After discovering a breach of unsecured PHI, notify the covered entity without unreasonable delay and within 60 calendar days. Many agreements set a shorter period; the shorter one binds you. |
| Documentation | 45 CFR 164.316 | Policies, procedures and records of required actions, kept for six years from creation or from when they were last in effect. |
| Termination | 45 CFR 164.504(e) | The agreement must let the covered entity terminate it if you violate a material term — the commercial consequence most Indian vendors feel first. |
Summaries are ours; the regulation text governs. General information, not legal advice — where your status or a term is genuinely unclear, take it to counsel.
What vendors assume
Five assumptions that cost Indian vendors contracts.
What people assume“We never signed a BAA, so HIPAA does not apply to us.”
What is actually trueBusiness associate status follows what you do with the data. A missing agreement is a compliance failure for both sides, not an exemption.
What people assume“We only host it; the data is encrypted.”
What is actually trueMaintaining PHI on someone’s behalf is one of the activities in the definition. Encryption is a safeguard you will be asked to evidence, not a way out of the status.
What people assume“Our client is the HIPAA company, not us.”
What is actually trueIf your client is itself a vendor to a hospital or insurer, you are its subcontractor — and a subcontractor that handles PHI for a business associate is a business associate.
What people assume“A HIPAA certificate will settle the client’s questions.”
What is actually trueThere is no official one. Clients that know HIPAA ask for the risk analysis, the safeguards and the agreement — and treat a certificate as a sign the vendor has not been asked before.
What people assume“We are in India, so Indian law does not cover US patients’ data.”
What is actually trueThe DPDP Act exempts most of its duties for foreign individuals’ data processed in India under a foreign contract — but not the duty to take reasonable security safeguards. See below.
Incident clocks
One incident, three clocks.
An Indian vendor holding US patient data can owe notice under the BAA, under HIPAA and under Indian rules for the same event. Plan to the shortest.
-
6 hours
CERT-In
If the incident is one of the cyber incident types listed in CERT-In’s directions, report it to CERT-In within six hours of noticing it. This applies to the Indian company regardless of whose data was involved.
See the CERT-In checklist
-
As your BAA says
Your client’s contract
Most agreements require prompt notice of security incidents and breaches, often far inside the regulation’s outer limit. Read yours before you need it.
45 CFR 164.314 — report any security incident you become aware of
-
60 days
HIPAA breach notice
Notify the covered entity of a breach of unsecured PHI without unreasonable delay and in no case later than 60 calendar days after discovery, identifying the individuals affected where you can.
45 CFR 164.410
A breach is treated as discovered from the first day it is known — or by exercising reasonable diligence would have been known — to anyone in your workforce other than the person who committed it. Logging that nobody reads does not stop the clock.
Indian law
India’s data protection law still covers the same files.
The Digital Personal Data Protection Act, 2023 has a specific exemption for this business. Section 17(1)(d) disapplies most of its duties where the personal data of people outside India is processed in India under a contract with a person outside India — exactly the arrangement of an Indian vendor serving a US healthcare client.
The exemption is narrower than it looks. It expressly keeps sub-sections (1) and (5) of section 8 — and section 8(5) is the duty to protect personal data by taking reasonable security safeguards to prevent a breach, the obligation that carries the Act’s highest penalty. For an Indian HIPAA vendor, then, the security work is owed twice: to the US client under HIPAA and the agreement, and in India under the DPDP Act from the dates in our deadlines tracker.
The same team will usually also hold Indian personal data — its own employees’, and often Indian customers’ — to which the Act applies in full. A single control set that answers both, mapped once, is cheaper than two programmes. Our DPDP readiness assessment covers the Indian side.
Security Rule update
The proposed Security Rule changes, and where they stand.
A significant rewrite of the Security Rule has been proposed but not adopted. Today’s rule is the one in force. The direction is worth building towards anyway, because US clients already ask for most of it.
-
6 Jan 2025
Proposal published
HHS published a proposed rule to strengthen the Security Rule (90 FR 898). Among other changes it would remove the distinction between “addressable” and “required” specifications, require encryption of all electronic PHI at rest and in transit with limited exceptions, and expressly require multi-factor authentication.
-
7 Mar 2025
Comments closed
The public comment period ended.
-
Spring 2025
Final rule targeted for May 2026
The federal regulatory agenda listed final action for May 2026. That date passed without a final rule.
-
Fall 2025
Target moved to July 2027 In force now
The next agenda moved the target for final action to July 2027. As of our review no final rule has been published.
-
If finalised
What business associates would gain Coming
The proposal would have business associates report activation of their contingency plan to the client within 24 hours, and covered entities obtain written verification of a business associate’s technical safeguards at least once every 12 months.
A proposed rule changes nothing until a final rule is published. Its final form, timing and compliance period may differ from the proposal — or it may not be finalised at all.
Where you stand
Twelve things a US client will ask you to show.
Where SemperWise fits
The parts of HIPAA readiness we can take on.
Knowing whether you are a business associate, client by client
A written status determination and a review of the agreements you have signed — or should have.
HIPAA readinessA risk analysis a client will accept
A documented, repeatable risk analysis of the systems that hold PHI, with a treatment plan and owners.
What the review coversEvidence that your technical safeguards work
Penetration testing of the applications and infrastructure that hold PHI, with a retest, and a verifiable certificate of the result.
Application testingAnswering the client’s security questionnaire once
Questionnaire answers drawn from a library tied to dated evidence, so an answer expires when its evidence does.
Questionnaire automationOne control set for HIPAA, DPDP and ISO 27001
Controls mapped once across the frameworks your clients ask for, with evidence collected against each.
The unified control modelSubcontractor agreements and vendor checks
An inventory of the vendors that touch PHI, with assessments and agreement status tracked.
Third-party risk in the platformStaff who know what to do with PHI
Awareness training for the teams that handle patient data, recorded for the client.
Security trainingNext step
Get a HIPAA readiness review scoped and priced.
Tell us which US clients send you patient data and what you do with it. A person replies within one business day to arrange a 30-minute call, then you get a written scope and one fixed price.
- Your business associate status, client by client, in writing
- A risk analysis and gap list against the Security Rule
- Agreement and subcontractor review
- The DPDP overlap mapped, so the security work is done once
We are not a law firm. Where status or a contract term is genuinely contested, we say so and recommend counsel.
Thank you
Your enquiry has reached us. A member of the SemperWise team will get back to you within 24 business hours.
If it is urgent, call +91-95851-60363.
Questions
What Indian vendors ask next.
The follow-up questions this subject raises, answered in full.
Does HIPAA apply to an Indian company?
It can, and for many Indian IT, BPO and health-tech vendors it does. HIPAA’s definition of a business associate covers anyone who creates, receives, maintains or transmits protected health information on behalf of a covered entity, and any subcontractor doing the same for a business associate. The definition says nothing about nationality or location. In practice the obligations reach an Indian vendor through its client’s business associate agreement, which is also how the client enforces them — including by terminating the contract. See our HIPAA page for how we approach it.
Is there a HIPAA certification for Indian companies?
No. Neither HHS nor its Office for Civil Rights certifies, accredits or approves organisations under HIPAA, and no third party can issue a certificate with legal standing — in India or anywhere else. Courses and assessments sold as “HIPAA certification” produce a training record or a self-assessment. What US clients rely on is evidence: a current risk analysis, operating safeguards, a signed business associate agreement and a tested breach process. Some also accept an independent attestation such as a SOC 2 report as part of that evidence.
What has to be in a business associate agreement?
The regulation sets minimum terms. Among them, the agreement must limit how you use and disclose the information, commit you to appropriate safeguards and to the Security Rule, require you to report security incidents and breaches to the client, flow the same restrictions down to your subcontractors, require return or destruction of the information at the end where feasible, and let the covered entity terminate if you breach a material term. Clients usually add shorter notice periods, audit rights and indemnities. Read those additions carefully: they are commercial terms, and they bind you more tightly than the rule does.
How quickly must we report a breach to our US client?
Under 45 CFR 164.410, a business associate must notify the covered entity of a breach of unsecured protected health information without unreasonable delay and in no case later than 60 calendar days after discovering it, identifying affected individuals where possible. Sixty days is the outer limit, not a target, and most business associate agreements set a shorter period that binds you contractually. Separately, an Indian company must report listed cyber incidents to CERT-In within six hours. Build your process around the shortest of these clocks.
Do we need a separate agreement with our cloud provider or subcontractors?
Yes, if they create, receive, maintain or transmit the protected health information for you. A business associate may let a subcontractor handle the information only with satisfactory written assurances, recorded in an agreement that meets the same requirements as yours. That covers cloud hosting, managed-support vendors, offshore partners and freelancers with access. Ask each provider for its business associate agreement before PHI goes onto its service, and do not assume a standard one exists. Keep an inventory of every subcontractor that touches the information and the status of its agreement — clients ask for it.
Is the 2025 HIPAA Security Rule update in force?
No. HHS published a proposed rule in January 2025 that would, among other things, end the distinction between required and addressable safeguards, require encryption of electronic PHI at rest and in transit, and require multi-factor authentication. The federal regulatory agenda moved its target for final action from May 2026 to July 2027, and as of our review no final rule has been published. The current rule is the one enforced. Many of the proposed controls are sensible regardless, and US clients already ask for MFA and encryption.
Does the DPDP Act apply to US patient data processed in India?
Partly. Section 17(1)(d) of the DPDP Act exempts most of its duties where personal data of people outside India is processed in India under a contract with someone outside India. But the exemption keeps section 8(1) and section 8(5) — and section 8(5) is the duty to take reasonable security safeguards to prevent a personal data breach, which carries the Act’s highest maximum penalty. So the security work you do for HIPAA also has to satisfy Indian law, from the dates in our DPDP deadlines tracker.
Where should an Indian vendor start?
With two documents. First, a written list of every client that sends you protected health information, what you do with it, and whether you are a business associate or a subcontractor in each case — with the agreement status next to it. Second, a risk analysis of the systems that hold that information. Those are what a knowledgeable client checks first, and every other safeguard decision follows from them. Then close the agreement gaps with your own subcontractors before building the technical controls the risk analysis prioritises.
Sources
Checked by our research desk on 7 November 2026. Regulations and figures move; where a number here matters to a decision, follow it to the source.
- 45 CFR 160.103 — Definitions (business associate, subcontractor) — Electronic Code of Federal Regulations, current
- 45 CFR 164.302 — Security Rule applicability — Electronic Code of Federal Regulations, current
- 45 CFR 164.308 — Administrative safeguards — Electronic Code of Federal Regulations, current
- 45 CFR 164.314 — Organizational requirements — Electronic Code of Federal Regulations, current
- 45 CFR 164.316 — Policies, procedures and documentation — Electronic Code of Federal Regulations, current
- 45 CFR 164.410 — Notification by a business associate — Electronic Code of Federal Regulations, current
- 45 CFR 164.502 and 164.504 — Uses and disclosures; business associate contracts — Electronic Code of Federal Regulations, current
- HIPAA Security Rule To Strengthen the Cybersecurity of Electronic Protected Health Information (proposed rule, 90 FR 898) — Federal Register, 6 January 2025
- RIN 0945-AA22 — Unified Agenda entry, Fall 2025 — Office of Information and Regulatory Affairs
- RIN 0945-AA22 — Unified Agenda entry, Spring 2025 — Office of Information and Regulatory Affairs
- The Digital Personal Data Protection Act, 2023 (No. 22 of 2023) — Gazette of India, 11 August 2023
Next step
Find out where you stand before your client asks.
A 30-minute call, then a written scope and a fixed price for a HIPAA readiness review. No obligation, and no charge for the conversation.