American Academy of Family Physicians

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Payment, Low Bidder Concept


In the process of selection of a health provider/physician group by a third-party health insurer or purveyor (private or governmental) competitive bidding may be utilized. The AAFP believes that when this process is utilized quality of care of patient enrollees must take precedence and be maintained regardless of the low bidder. The AAFP recognizes a "low bidder concept" only when the competing physician/providers' credentials and quality are of an equivalent level within that area to be served. (1984) (2008)