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American English. Ratona's explanation is excellent: Ratona said: A supplier of goods/merchandise. A provider of care/service. Click to expand... The words are synonyms, but their use is different. A supplier gives material, products, merchandise, while a provider gives service.
1 Providers, in Medicare terminology, include patient care institutions such as hospitals, critical access hospitals, hospices, nursing homes, and home health agencies.  Suppliers are agencies for diagnosis and therapy rather than sustained patient care, such as laboratories, clinics, and ambulatory surgery centers.