Whats the TPA Golden Goose?
There have been about 200 business prospect studies of the TPA industry in recent years (for investment, purchase, mergers, etc.). From what we’ve heard (they are all proprietary and thus private), all have been endorsements for a bright future for TPAs. I was told that one used the term “golden goose” to describe the profitable prospects of being in the TPA business. That is flattering, but VERY misleading. No one should be in the TPA business with the expectation of it being an consistent money-making machine. The successful TPA business is a labor of love, with dedication to the client being the top priority. In an ideal world, that would be richly rewarded, but “What have you done for me lately?” appears by the time fee & contract renewal time rolls around, which means that TPAs end up giving away a lot of expertise for free in this very competitive business. Also, many of the greatest and most valuable achievements of TPAs for their clients are invisible (like avoiding gigantic fu
