The National Association of Travel Healthcare Organizations took a healthcare vendor management system to task this month for missed payments to staffing firms. The VMS said it's working on the problem.

"We have received a number of complaints from our NATHO membership regarding nonpayment for services provided to your healthcare facility clients," according to the NATHO letter sent Sept. 3 to Symbio Solutions, a Dallas-based healthcare VMS. "This is an unacceptable situation and must be remedied immediately."

NATHO's letter said the organization would issue an alert to its members about Symbio, but would update them once the situation has been resolved.

"In the past several years, several vendor management providers have defaulted on their obligations to their staffing agencies," according to the NATHO letter. "When this occurs it creates financial hardships for those agencies who have provided the staffing services to facility clients in good faith, and also puts such clients in the position of having to possibly make restitution to the agencies on behalf of the defaulted vendor management organization even though the facility may have already made payments."

Symbio wasn't able to distribute funds owed staffing firms through the end of July. But Symbio CEO Rodney Shifflette said Thursday the VMS fixed the problem for current and future payments, and it's working on getting money paid prior to July 31 to staffing firms.

"We have been working very diligently to get the problem corrected," Shifflette said Thursday.

The problem with pre-July 31 payments took place after an issue arose at Symbio's former funding company, Sun Capital Healthcare, Shifflette said. However, since July 31, funds are being placed in either a Symbio lockbox or escrow account for distribution. Now, staffing firms are being paid according to agreement terms and, in most cases, a shorter period, Shifflette said.

Symbio also continues to work with its former funding company regarding the money owed before July 31, he said. In addition, Symbio is looking to possibly be acquired, with a buyer coming in to make the payments current.

Shifflette said a letter was sent to agencies involved explaining the situation.

"We're doing everything we possibly can to get the problem resolved," he said.

Symbio's funding company, Sun, had been included as a relief defendant in a U.S. Securities and Exchange Commission lawsuit announced in April that involved a Naples FL investment firm called Founding Partners Capital Management Company. The SEC announced an emergency asset freeze of Founding Partners in April.

The SEC at the time said allegations in the suit against Founding Partners included: misrepresentation of risk, misuse of fund assets to pay personnel expenses and not disclosing to investors a prior SEC order against it.

Sun received $550 million in loans from Founding Partners, according to court records. Sun was later dismissed from the lawsuit, but remains party to an ancillary suit by the receiver set up in the Founding Partners case.