What is a Third-Party Administrator (TPA) for Drug Testing and Why Your Business Needs One

Theresa Pugh
Jan 7
5 min read

What is a Third-Party Administrator (TPA) for Drug Testing and Why Your Business Needs One

If you’re an employer managing drug testing programs, you’ve probably encountered confusion, administrative headaches, and compliance concerns. You’re coordinating with multiple collection sites, chasing paperwork, trying to understand DOT regulations, and wondering if you’re doing everything correctly. There’s a solution many businesses don’t know exists: a Third-Party Administrator (TPA) for drug testing.

Understanding what a TPA does and why it matters can transform your testing program from chaotic compliance burden to streamlined, professional process.

What Exactly is a TPA for Drug Testing?

A Third-Party Administrator (TPA) is a professional service company that coordinates and manages drug testing programs on behalf of employers. Unlike collection sites that simply take specimens, TPAs handle the entire administrative and coordination process of your testing program.

Think of it this way: a collection site is where the actual specimen collection happens. A TPA is the professional coordinator who manages your program, ensures compliance, coordinates with collection sites, handles documentation, and serves as your single point of contact for everything testing-related.

TPAs don’t typically collect specimens themselves. Instead, they coordinate testing through networks of certified collection partners, manage the administrative requirements, and ensure your program runs correctly according to Department of Transportation (DOT) regulations or your company’s non-DOT testing policies.

What Services Do TPAs Provide for Employers?

Professional TPAs coordinate comprehensive testing programs including:

DOT Compliance Management - If your business employs DOT-regulated safety-sensitive workers (truck drivers, pilots, railroad employees, transit workers, pipeline workers), you’re required to follow specific federal testing regulations. TPAs understand these requirements and coordinate compliant programs including pre-employment testing, random selection, post-accident testing, reasonable suspicion testing, return-to-duty testing, and follow-up testing.
Non-DOT Testing Programs - For employees not covered by DOT regulations, TPAs coordinate customized testing programs based on your company policies, including pre-employment screening, random testing, post-incident testing, and reasonable suspicion testing.
Random Testing Coordination - TPAs manage random selection processes using compliant software, coordinate scheduling with selected employees, and maintain proper documentation. Random testing is required for DOT programs and recommended for non-DOT workplace safety.
Nationwide Collection Network Access - Professional TPAs work with certified collection sites across the country, which is critical if you have employees in multiple locations or drivers on the road. You don’t coordinate with dozens of different collection sites - your TPA handles it.
Documentation and Record Management - TPAs maintain required testing records, chain of custody documentation, and compliance files. For DOT programs, specific record-keeping is mandatory. Your TPA ensures everything is documented correctly and available when needed.
Medical Review Officer (MRO) Coordination - When test results come back, an MRO (a physician trained in drug testing interpretation) reviews them before they’re reported as positive. TPAs coordinate with MROs to ensure proper review and legitimate medical explanations are considered before final results reach you.
Substance Abuse Professional (SAP) Coordination - If an employee tests positive and needs to go through the return-to-duty process, TPAs coordinate with Substance Abuse Professionals who evaluate employees and create return-to-duty plans.

Why Your Business Needs a TPA Instead of Managing Testing Yourself

Compliance Protection - Drug testing regulations are complex, especially DOT requirements. Mistakes can result in fines, legal liability, and program violations. TPAs specialize in compliance and keep your program within regulatory boundaries.
Administrative Efficiency - Managing testing in-house means your HR team coordinates scheduling, tracks employees, maintains records, communicates with collection sites, handles MRO processes, and stays updated on regulation changes. A TPA handles all of this, freeing your team for actual HR work.
Consistency Across Locations - If you have employees in multiple cities or states, coordinating consistent testing is complicated. TPAs provide standardized processes regardless of employee location.
Risk Management - Improper testing procedures, documentation errors, or compliance failures create legal risk. TPAs reduce this risk through professional coordination and proper protocols.
Cost Effectiveness - While TPA services have a cost, that cost is typically less than the staff time, compliance risk, and administrative burden of managing testing internally. You pay for expertise and efficiency.
Employee Privacy Protection - TPAs maintain confidential testing information according to regulatory requirements, protecting both employee privacy and your company from potential violations.

How Does TPA Coordination Actually Work?

Here’s the typical process when you work with a TPA:

Program Setup - You work with the TPA to establish your testing policy, identify which positions require testing, determine testing types needed, and set up your account.
Employee Enrollment - Your TPA sets up employee records in their system and provides you with process documentation for new hires or current employees entering the program.
Testing Orders - When you need testing (new hire, random selection, post-incident), you contact your TPA. They coordinate scheduling and send the employee to an appropriate collection site with proper paperwork.
Collection Coordination - The employee goes to the collection site with TPA-provided documentation. The collection site handles specimen collection and sends it to the lab. The TPA tracks the process.
Results Management - Lab results go to the MRO for review. The MRO contacts employees if needed for medical explanations. Final results come to you through the TPA with proper documentation.
Record Keeping - The TPA maintains all required records, provides you with reports when requested, and keeps documentation available for audits or legal requirements.

Choosing a TPA for Your Business

Not all TPAs offer the same level of service or expertise. When evaluating TPA options, consider:

Industry Experience - Do they specialize in your industry or understand your specific compliance requirements?
Collection Network - Do they have certified collection sites where your employees actually work?
Technology Systems - Can you access testing information, order tests, and view records through user-friendly technology?
Compliance Expertise - Do they demonstrate current knowledge of DOT regulations and industry best practices?
Communication - Will you have a dedicated contact or clear communication channels when you have questions?
Documentation Standards - How do they handle record-keeping and ensure you have what you need for audits or legal situations?

Making the Transition to TPA Services

If you’re currently managing testing in-house or working with individual collection sites without TPA coordination, transitioning to professional TPA services is straightforward:

Your TPA will help you establish policies, transfer any existing records, set up employee information, and create processes that work for your business operations. Most employers find the transition reduces their administrative burden immediately while improving program compliance and consistency.

The Bottom Line on TPA Services

Drug testing is a compliance requirement and risk management tool for your business. Managing it effectively requires expertise, administrative coordination, and attention to regulatory detail. Third-Party Administrators exist specifically to provide this coordination professionally.

If your current testing program feels chaotic, compliance feels uncertain, or your HR team spends significant time on testing coordination, a TPA can transform your program into a streamlined, compliant, professionally managed system.

Prime Diagnostic Testing specializes in TPA services for employers across industries, coordinating DOT and non-DOT testing programs through our certified collection partner network. We handle the complexity so you can focus on running your business with confidence that your testing program is managed correctly.

Ready to explore professional TPA coordination for your business? Contact Prime Diagnostic Testing to discuss your employer testing program needs and learn how coordination services can reduce your administrative burden while improving compliance and consistency.