In the healthcare sector, this term refers to a daily allowance paid to employees, often temporary staff or independent contractors, to cover expenses such as lodging, meals, and incidentals while they are working away from their primary work location. The amount is a fixed rate and is provided regardless of the actual expenses incurred. For instance, a traveling nurse contracted to work at a hospital in another state might receive this allowance for each day worked to offset living costs.
The relevance of this allowance is significant in managing healthcare costs and staffing flexibility. It allows facilities to quickly address staffing shortages without incurring the higher costs associated with permanent employees, such as benefits and long-term salary commitments. Historically, the utilization of such allowances has evolved as healthcare systems adapted to fluctuating patient volumes and the need for specialized skills on a temporary basis, contributing to more efficient resource allocation.
