✅ What is a TPA (Third-Party Administrator) in the lab industry?
A Third-Party Administrator (TPA) is a company that acts as the middleman between clients (employers, government agencies, schools, DOT-regulated companies, etc.) and service providers (labs, collectors, medical review officers).
They manage drug testing, background checks, occupational health, and compliance programs on behalf of their clients.
✅ What TPAs Do for Labs
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Contract with Employers/Agencies
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TPAs sign contracts with businesses that need drug testing, health screenings, or compliance services.
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Example: A trucking company needs DOT drug tests for drivers. They don’t want to manage labs directly, so they go through a TPA.
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Assign Clients to Labs/Collectors
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The TPA has a network of labs and mobile collectors.
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When a client orders a test, the TPA directs that client to one of their partner labs (like you).
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For mobile labs, the TPA schedules appointments at job sites, schools, or homes and sends the collector out.
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Handle Payment & Billing
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The employer/client pays the TPA.
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The TPA then pays you (the lab or mobile collector) for the service.
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Often TPAs pay on a per-test basis (ex: $50–$120 per urine collection, higher for specialty tests).
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Ensure Compliance
✅ How TPAs Send Mobile Lab Clients
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A TPA might have a contract with 200+ trucking companies that need random DOT drug testing. Instead of each company calling a lab, the TPA receives the request.
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They look at your profile in their collector network and assign you the job if you’re closest.
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You get a notification/order, collect the specimen on-site, and send it to the designated lab (if you’re just the collector) OR process it (if your lab is certified for that test).
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You invoice the TPA, and the TPA pays you.
✅ Why Partnering with TPAs Benefits Your Lab
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Consistent client flow without needing to chase contracts directly.
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Mobile opportunities (they send you out to schools, worksites, homes, etc.).
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Guaranteed payment (they collect from clients and then pay you).
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Scalability (TPAs work nationwide, so you can expand your reach).