Final answer:
A business associate is an individual or organization that assists in the performance of a function involving the use or disclosure of PHI on behalf of a covered entity.
Step-by-step explanation:
An individual or organization that is not a member of the Covered Entity's workforce but performs or assists in the performance of a function involving the use or disclosure of PHI on behalf of the Covered Entity is known as a Business Associate.
A business associate could be a third-party contractor, consultant, or vendor who handles protected health information (PHI) on behalf of the covered entity.
They must sign a business associate agreement (BAA) with the covered entity, which outlines their responsibilities in protecting PHI.