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Third-Party Administration

Meaning

Third-Party Administration, in the context of health and wellness, refers to the practice where an external, specialized entity manages the operational and administrative functions of a health plan, wellness program, or clinical service on behalf of a primary organization or clinic. This external entity, the Third-Party Administrator (TPA), handles tasks such as claims processing, eligibility verification, data management, and compliance oversight, but does not typically assume the financial risk of the health plan itself. Utilizing a TPA allows clinical providers to focus their resources and expertise entirely on direct patient care and therapeutic modulation.