In general, a payor (also spelled "payer") is the entity that pays for services rendered by a healthcare provider. This can refer to a person, organization, or entity, such as a private insurance company, government program, employer, or patient. In healthcare, the term "payor" is often used interchangeably with "payer".
In accounting, the payor (or payer) is the party in a financial transaction that is making payment, whether it be in exchange for goods or services, to settle a claim, or to satisfy another financial obligation. The payee, on the other hand, is the party to whom money is to be paid.
Its important to note that the term "payor" can have different meanings depending on the context. For example, in the U.S. Department of the Treasury, "payor" is the designation given to a CMS user that only has permission to pay a filing fee.
In summary, a payor is the entity that pays for services rendered by a healthcare provider, or the party in a financial transaction that is making payment.
