Covered entity, business associate, or both
Status is the question a procurement reviewer opens with, and most groups answer it loosely. A group that bills health plans electronically for its reads, itself or through a billing company, is a covered entity in its own right, because sending standard transactions is what the definition turns on. Separately, a hospital’s contract may require a business associate agreement (BAA), and signing one binds the group to its terms. Both can be true at once, and neither cancels the other. A group that cannot say which description applies under which contract cannot say which obligations it is carrying, which is precisely what the reviewer is testing.
In the programThe program record states the group's status, the agreements behind each contract, and the proof a hospital asks for, in one place.

