How can you negotiate better deals with third-party administrators?

1 Know your goals and priorities

Before you start negotiating with a TPA, you need to have a clear idea of what you want to achieve and what you are willing to compromise on. Do you want to reduce your costs, improve your service quality, expand your network, or gain more control over your data? What are your non-negotiables and your trade-offs? How do you measure your success and satisfaction with a TPA? Having a well-defined set of goals and priorities will help you focus your negotiation strategy and communicate your expectations effectively.

2 Do your research and benchmarking

You also need to have a good understanding of the market and the competition. How do the fees, terms, and performance of your current or potential TPA compare to other TPAs in your area or industry? What are the best practices and standards for TPA services? What are the trends and challenges that affect TPAs and their clients? Doing your research and benchmarking will help you assess the value and quality of your TPA and identify areas for improvement or negotiation.

3 Build trust and rapport

Negotiating with a TPA is not just about numbers and contracts. It is also about building a relationship based on trust and rapport. You want to establish a positive and respectful tone, show interest and appreciation, and avoid confrontation and criticism. You also want to listen actively, ask open-ended questions, and empathize with the TPA's perspective and needs. Building trust and rapport will help you create a win-win situation and foster long-term cooperation.

4 Be flexible and creative

Negotiating with a TPA does not have to be a zero-sum game. You can look for ways to create value for both parties and find solutions that benefit everyone. For example, you can offer incentives, discounts, or referrals for the TPA in exchange for lower fees, better terms, or more services. You can also explore options for customization, innovation, or collaboration that can enhance your partnership and differentiate you from your competitors. Be flexible and creative in your negotiation and be open to new ideas and opportunities.

5 Review and monitor the agreement

Once you have reached a deal with a TPA, you need to review and monitor the agreement carefully. You need to make sure that the contract reflects your negotiated terms and conditions, and that you understand your rights and obligations. You also need to track and measure the performance and satisfaction of the TPA, and provide feedback and recognition. If there are any issues or changes, you need to address them promptly and constructively. Reviewing and monitoring the agreement will help you ensure compliance, quality, and accountability.