What is Per Diem Healthcare Staffing? [FAQs]

• April 22, 2020
• kupplinadmin
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What is per diem?

“Per diem” is Latin for “per day” or “for each day.”

According to Wikipedia, Per diem or daily allowance is a specific amount of money that an organization gives an employee, per day to cover living expenses when travelling on the employer’s business.

A per diem payment can cover part or all of the expenses incurred. It may include things like accommodation allowance, meals, travel allowance etc.

 

What is per diem staffing?

Any company may need a per diem employee at any stage according to their needs. It is a form of temporary employment. When they need a per diem employee, they may contact a staffing agency for the fulfilment of the requirement.

What is per diem in healthcare?

In healthcare, a per diem employee may work for varied hours in any week. In this position, the work hours of the said person may vary at any given week.

A healthcare facility usually hires per diem employees to fulfil the shortage of staff members. When there are more cases to be attended than usual, a per diem member can be enrolled.

Does per diem pay more?

Employers will usually pay more or less than the federal per diem rate. However, if they pay more than the federal per diem rate, the excess will be taxable to the employee. And the per hour rate may seem more than what you currently make, but it doesn’t come with other benefits.

Is per diem the same as on-call?

Yes. In healthcare, the nurses working in a per diem role are essentially working on call.
Working on-call means different things based on the facility or organization. For example, the nurse may be called same-day for sick calls. Shifts may vary from a partial shift to an eight to twelve-hour day (depending on the organization). Per diem nurses can also be pre-scheduled to fill in for regular staff who will be off on vacation, etc.

How is per diem paid out?

Per diem payments may cover business expenses fully or partially. Companies may use a per diem rate for lodging and meals, or a per diem rate to cover meals only. A partial per diem, for example, may total $100 to cover meals only, while lodging expenses and incidentals are paid out-of-pocket. Some companies make per diem payments by making out checks to the employee as an indication that it is separate from the employee’s income.

Companies handle per diem payments differently.

• Company credit cards: Some companies issue credit cards to their employees. This allows them to immediately pay for business expenses while on the job without incurring any expense on their own.
• Full or partial expense coverage: While some companies cover employee expenses in full, some firms only offer per diem payments for partial expenses—specifically for things like lodging, food, and travel.
• Fixed amounts: Many corporations provide their employees with a specific, fixed daily rate. Employees are expected to cover all or part of their costs with this per diem.

Generally, a per diem allowance covers:

• Cost of the meal
• Fees and tips for services
• Laundry, dry cleaning etc.
• Room service.

How many hours can a per diem work?

The amount of hours a per diem healthcare employee works varies from week to week. There is no per diem schedule because as previously mentioned, anyone on a schedule is considered part or full time. As a result, there is no limit on how many hours a per diem employee can work. The time they put in will depend on the needs of the specific healthcare facility that week. Generally speaking, per diem employees won’t work as much as full-time employees.

Are you looking for per diem or temporary employment? Contact Kupplin Worldwide today!

Sources:

• https://www.registerednursing.org/answers/what-does-mean-per-diem-nurse/
• https://www.investopedia.com/terms/p/per-diem-payments.asp
• https://en.wikipedia.org/wiki/Per_diem