Who is referred to as the guarantor in a medical billing context?

In a medical billing context, the guarantor is specifically the individual who is responsible for paying for the healthcare services rendered. This person assumes responsibility for the financial obligations associated with the medical treatment, regardless of whether they are the patient themselves or another party who agrees to cover the costs, such as a parent or a spouse. This role is critical in the revenue cycle, as the guarantor's information is necessary for billing, collections, and follow-up on any outstanding charges.

While insurance companies handle the costs of covered services, they do not hold responsibility for payment in cases where there are out-of-pocket expenses or balances remaining after insurance has processed a claim. Hospital administrators focus on organizational management and policies rather than individual billing responsibilities, and the billing department facilitates the billing process but does not take on financial liability for charges. Therefore, the role of the guarantor is essential and directly linked to financial responsibility in the healthcare setting.