What Is A Third Party Administrator (TPA) For Drug Testing Programs? - YouTube

Channel: National Drug Screening

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Here at National Drug Screening, we regularly get the question

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What is a TPA - a Third Party Administrator?
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And...
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Why do I need a TPA for my drug testing program?
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And also...
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Why can’t I purchase drug testing directly from the lab, myself?
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In this video from the NDS Video Blog Series, we’ll be answering
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these questions about TPAs for the administration of drug testing programs.
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The TPA or Third-Party Administrator is also often called a C/TPA
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– Consortium/Third Party Administrator.
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This term comes from the United States Department of Transportation
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regulations, 49 CFR Part 40.
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The word “consortium” applies to the management of a random testing
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pool consisting of employees from multiple companies; companies with
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1, 2, 4 or 10 employees or more.
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DOT regulations require companies with 1 driver to be in a consortium as described.
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So, a consortium is a grouping of the employees from many different companies.
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There’s no maximum number of employees that can be in a
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consortium random testing pool.
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What exactly is a TPA and what do they do?
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The TPA is a company that helps employers manage a drug and alcohol testing program.
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There are a variety of services and tasks that the TPA may provide for employers.
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These services and tasks can include the following:
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– Sell drug testing to employers
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– Manage random testing programs
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– Review or set up drug free workplace policies
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– Provide employee education & supervisor training when needed
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– Set up Lab and MRO accounts
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– Assistance with MIS reports when needed
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– Obtain CCF Forms & Supplies
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– Update customers and employers on regulations
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– Assign collectors or collection sites
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– Maintain liaison between Collection site, Lab, MRO & customer
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– Receive and transmit results
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– Combine billing
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– Maintain records
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– Provide access to an Employee Assistance Program - EAP
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– Provide various reporting as requested
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– Ongoing customer service
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– Troubleshoot missing or abnormal results - fatal flaw, canceled test, etc
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– Answer questions
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Many times, the TPA is simply coordinating the ordering of testing,
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specimen collection, lab testing, MRO review, and the receiving
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and storing of drug test results.
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Why do I need a TPA for my drug testing program?
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Ultimately, using a TPA is much more efficient than
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trying to do it all yourself.
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And it doesn’t cost any more money.
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A professional TPA has a web portal that seamlessly connects collection
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sites, laboratories, and Medical Review Officers all together electronically.
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Through this type of online portal, you can easily and electronically
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order drug tests for your applicants and employees and you can receive
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the drug test results via e-mail or by logging in to the web portal.
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This is a seamless and efficient process with fast turnaround times.
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Furthermore, the TPA is a potentially invaluable asset.
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A good TPA is knowledgeable and professional and can help you
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with any issues or problems.
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A big part of the TPA’s business is to provide customer service to the employer.
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Without the TPA you’ll need numerous contacts to accomplish the same goals and
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you’ll be going around in many different directions to get help and service.
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The TPA also coordinates and manages any required random testing you may need.
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This can include enrollment into a consortium if you are a smaller company.
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The TPA also provides you with a professional service
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and is very knowledgeable.
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The TPA will advise you on critical Federal regulations, State laws
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and the best practices that need to be followed for drug testing.
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With the services of a TPA, you can also avoid exposure to liability
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within your drug testing program.
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Protecting your business from unnecessary liability can prove to be invaluable.
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Before we get to the final question for this video, take just a moment
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to hit that Like button if you’ve found this video valuable in any way.
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And if you haven’t already, be sure to Subscribe to the NDS
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channel and hit that bell icon to get notified of future videos.
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Okay, so the final question we’re answering today is one we
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get often, because it just makes a lot of sense, and that is...
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Why can’t I just purchase drug testing directly from the lab, myself?
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Short answer is, technically you could purchase lab
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testing directly from the lab.
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However, this can be a quite complex and timely process.
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Typically, labs only sell directly to very large employers like a
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Home Depot, Walmart, or an Amazon.
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And typically, even these large companies utilize a TPA for efficiency, cost savings
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and even to help with areas of liability.
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If you’re able to purchase lab services directly from the lab, you’ll still
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need arrangements for ordering the test, getting the specimen collected at a local
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facility, contracting an MRO, receiving and viewing the final test results and
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knowing who will provide customer service.
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Laboratories do a good job at receiving specimens, testing,
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and reporting to the MRO.
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Laboratories are NOT equipped to provide all the other necessary
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parts of the drug testing program.
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If you revisit the service and tasks that a TPA provides, think about it...
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does a major laboratory have the capability to provide
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all of these varied services?
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No, they don’t.
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It’s not in their business model and they don’t have the
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capacity to do these things.
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Major laboratories do not have the capability to set up accounts for
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small and/or medium sized employers.
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The Labs rely on the TPA’s to assist small and medium sized employers
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with their drug testing needs.
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If you found it helpful, please consider sharing this video on social
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media, via email or even text message.
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Be sure to visit the NDS Channel at DrugTestVideos.com for many
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more videos on various topics from the world of drug testing.
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As always, thanks for watching.
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See you in the next video.