Preferred provider arrangements concentrate volume with selected firms or vendors in exchange for rate concessions, service commitments, and performance standards. Participation typically requires meeting defined criteria.
Programs may be exclusive or preferential.
Alternative Names:
Preferred Counsel Program, Preferred Vendor Program
Why it Matters?
Volume concentration is the exchange, and firms should assess whether the promised volume justifies the rate concession before accepting. Programs frequently deliver less volume than projected, particularly where the client also maintains relationships outside the program. The stronger arrangements specify minimum volume or provide the firm exclusivity within a defined geography or practice area rather than merely preferred status.
Frequently Confused with
Related terms
Frequently asked questions
What should a firm evaluate before joining?
Why do programs underdeliver?
