The medical malpractice TPA: Taking it to the next level

Risk managers whose organizations self-insure their medical professional liabilities often find themselves dealing with their institution's third-party administrator (TPA), the independent entity that manages claims against the organization and its employees. By understanding better the purpose and operations of a TPA, risk managers can enhance their organizations' litigation outcomes while adding new tools to improve patient safety and quality of care. Viewing the TPA simply as an expense item to be reduced to its lowest possible level deprives the organization of a valuable resource in the form of high-quality data on the drivers of professional liability losses. This article identifies the qualities found in an exceptional medical malpractice TPA and suggests ways to create an effective partnership that will reduce the total cost of claims while supporting the risk manager's mission.