Third Party Administrator (TPA)

What is Third Party Administrator (TPA) ?

‘Third Party Administrator’ or ‘TPA’ refers to those agencies that handle the administrative duties of a specific process for other companies. The most common kind of TPA are the insurance providers who undertake all the administrative duties related to it by themselves.

Companies seek out TPAs to outsource these non-core processes so that the in-house staff can be occupied with the core business related processes. TPAs are generally common in the healthcare industry where the process is quite complex and requires an experienced staff to handle it well.

However, one must note that the TPAs simply handle the administrative duties. They do not possess any legal or financial responsibility towards the process they are handling.

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