City social services have been accused of removing the 'humanity' out of the care home system by using an online eBay-style auction to find places for the elderly.
In the past, people requiring residential care would be referred by a social worker and taken to visit homes in their area until a suitable one was found.
But details of their conditions and needs are loaded up onto a website and providers asked to enter prices for care - and in Birmingham 92.23 per cent have gone to the lowest bidder.
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The council insists the online commissioning website, created by software company Matrix SCM, merely uses technology to match service users to suitable homes and that quality of care is more important than price, even though use of the system has cut costs.
But Les Latcham, chairman of the Birmingham Care Home Consortium, said: "The process takes away all human interaction.
"People used to visit the home, spend some time and see if it was for them. The individual and their family used to be involved from the start. Now, more often than not, they are sent to the lowest bidder and, if they refuse, get the next lowest."
He said he understood there was a funding crisis in social care and councils needed to save money following major cuts in Government funding.
"I just don't believe this is the right way to go about it," he added.
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A Freedom of Information Act request from the consortium revealed that, on occasion, people were being sent to homes which are not up to Care Quality Commission (CQC) standards.
Birmingham care home operator Mike Gimson, of the Moundsley Healthcare Group, said: "CQC non-compliant homes are bidding less than compliant homes, thus good homes are going out of business and not able to compete.
"Expenditure has been reduced in Birmingham by 33 per cent but safeguarding issues have gone through the roof.
"Birmingham Care Consortium is calling on this Government to stop this elderly human trading on a reverse e-bay system. It's a disgrace."
He argues the NHS and social services should be linked to provide continuity of care for the elderly.
"The current stystem is broken and our elderly are suffering," he added.
insists that placements are made on an assessment based on 60 per cent quality and 40 per cent on price.
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A spokesman said: "The well-being of all our service users is paramount and we only award care packages to providers who are able to demonstrate that they can meet the needs of individuals.
"Since January 2014, we have awarded 5,857 care packages, of which 94 per cent of residential placements and 88 per cent of home support placements were awarded to the best quality provider bidding on the day.
"No placements have been awarded based solely on price without considering the quality of care or provider, weighted 60 per cent on quality and 40 per cent on price.
"Each bid is judged on its own merits, ensuring that we balance high quality care with the need to achieve value for money, particularly given the market-driven increase in the cost of care over the past year."