Posted by: jessicasmall | August 1, 2007

Feel Small, Work Big

Our industry is considered a “cottage industry.”  For the most part it is made up of family owned Third Party Administrators (TPAs) who popped into the market in the eighties and early nineties and were all pretty similar in nature.  Nowadays we are seeing more and more consolidation of these aging family businesses as they try to respond to the market’s demand for ever-expanding services and features.

At TASC we know it’s good to appear small when that smallness is seen as an ability to respond to the customer’s needs and a willingness to go the extra mile for them.  We make every effort to retain the good things you expect from a small company.  However, feeling small while working big is where the real challenge lies.
We “work big” because we…
1.  -have leadership that plans for the future growth and longevity of the business
2.  -insure for potential risks (audit guarantee, COBRA liability, performance bonding, cyber risks, etc.)
3.  -invest in technology
4.  -have disaster recovery plans firmly in place
5.  -have resources dedicated to training and maintaining a training center
6.  -have a department dedicated to internal procedures and internal auditing
7.  -establish and maintain an infrastructure that is scalable
TASC’s competition is having a hard time living up to the level of performance demanded by the market.  More often than not those who are bigger than TASC are owned by private equity groups; for them the TPA services are just another business unit, one without much stature or say inside the behemoth.  On the other side of the mix are the smaller TPAs that just cannot work big. They haven’t invested in the technology, in the training, in the insurance, in the procedures/audits, in the disaster recovery, and so on.  Sure, they’re planning ahead like we are.  But their plans include an exit strategy that has no succession plan.  In other words, the business will exit right along with the owners.

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