Lee Memorial Health System (LMHS) in Fort Myers, Fla., instituted new steps to add efficiency and accuracy to its process for paying agency nurses and other travelers. LMHS no longer pays for time submitted by travelers to their companies. Instead, travelers must adhere to LMHS's timekeeping practices. In addition, the health system no longer pays from agency invoices. Rather, LMHS sends agencies a reverse invoice stating how much the system will pay, based on LMHS's own time-keeping records.

This new process has allowed LMHS to accurately record and report contract labor use in a timely manner on the health system's financials. It has also avoided "back pay." The old process allowed agencies to bill LMHS for traveler time worked up to six months in arrears. Now, if a traveler works for the health system, LMHS records that traveler's time and only pays the companies for time collected in LMHS's timekeeping system on a pay period basis.

 

New Traveler Payment Process Flowchart

View exhibit 1

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Publication Date: Wednesday, April 01, 2009

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