This study discusses the perception of hospital administrators and health insurance policyholders about the TPA services and managing the relationship between the customers and providers. General awareness about the TPAs existence and services they provide is low. Policyholders rely more on their insurance agents than on the insurance companies or third party administrators. TPAs are the interface between the insurer and the insured and they are in a position to educate the policyholders about health insurance. However, their role in consumer education does not infuse much confidence on their intention or ability to do so. Hospital administrators do not perceive that the introduction of TPAs has increased their patient turnover and at the same time they perceive that this has increased the burden on their expenditure as effort level to manage the relationship has gone up.
