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                                                                   Exhibit 10.42



                                  March 8, 2005

Ms. Nancy J. Ham

      Re:    Additional Compensation Arrangements

Dear Nancy:

      I am pleased to advise You that in recognition and consideration of your
service to the ProxyMed, Inc. (the "Company") the Board of Directors of the
Company has approved several amendments to your current compensation plan. This
letter will confirm our agreement to amend your current Employment Agreement
with the Company ("Agreement"), as discussed herein.

  1.  Retention Bonus. In the event of a combination (including a tender offer,
merger, sale or exchange of 50% or more of the outstanding capital stock of the
Company, or sale of all or substantially all of its assets or otherwise) of the
Company with another party or a recapitalization of the Company or similar
restructuring (a "Strategic Transaction"), You will be eligible to receive a
lump sum bonus payment ("Retention Bonus") from the Company in the amount of
$500,000. This Retention Bonus will be due and payable in cash upon the closing
of a definitive transaction ("Closing"), or in the case of a transaction
involving a tender offer or other purchase or sale of stock, when control of 50%
or more of the Company's outstanding common stock is acquired by an entity other
than a current stockholder. In order to qualify for the Retention Bonus, You
must remain an active employee through the time of the Closing (other than
termination of your employment by the Company Without Cause), and cooperate
fully with the Company in the completion of the Strategic Transaction. You
should expect that in almost all situations, this bonus will be fully taxable,
and consult with your tax adviser for your situation. The Retention Bonus set
forth in this paragraph is in lieu of and supersedes any prior arrangement
between You and the Company with respect to a bonus payable upon a merger,
reorganization or change of control of the Company or other Strategic
Transaction, including the Merger/Buyout Bonus plan approved by the Compensation
Committee of the Company on
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                                                          ProxyMed - Page 2 of 2

January 23, 2002 (the "Existing Bonus Plan"). All bonuses previously granted by
the Company to You pursuant to the Existing Bonus Plan are hereby cancelled and
terminated.

  2. Special Bonus. In respect of your personal efforts on behalf of the
Company during fiscal year 2004, You will receive a one time bonus of $10,000.
This bonus is in lieu of any other bonus for 2004 performance (other than any
applicable sales commission plan) will be payable in the next regular pay cycle
following the Company's public release of earnings on March 16, 2005.

  Kindly indicate Your agreement and acceptance of the terms of this bonus
letter by executing below, and returning a fully executed copy of this letter to
me at the address above.

                                             Very truly yours,

                                             PROXYMED, INC.

                                             /s/ David Edward Oles

                                             David Edward Oles
                                             Senior Vice President & Secretary

By signing below, You accept and agree as stated above:

      /s/ Nancy J. Ham
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cc:   Kevin M. McNamara, CEO