Draw - Physician Contract Glossary
Draw
Definition
A regular advance payment against future earnings in a formula or collections-based model.
Examples in Context
"Physician will receive a monthly draw of $10,000, reconciled with collected revenue quarterly."
"The draw amount will be adjusted if Physicianā€™s collections are consistently below expected targets."
Implications for Physicians
- Provides stable income, even if collections lag.
- May require repayment if collections fall short.
Negotiation Tips
- Set a realistic draw that matches likely collections.
- Confirm if you owe back the difference if revenue is low.
- Negotiate flexible repayment terms if collections unexpectedly drop.
Red Flags and Pitfalls
- Overestimating your draw can create debt to your employer.
- Delayed billing or credentialing can cause unexpected shortfalls.
- Contracts that allow employers to reduce your draw without clear notice.
Related Terms
FAQs
- "What happens if I never reach the draw amount?"
- In many cases, you may have to repay the difference or forfeit future earnings.
- "Does my draw carry over monthly?"
- Usually yes, until it is reconciled against collected revenue.
- "Can I increase my draw if I expect higher collections?"
- Yes, but ensure the contract specifies how adjustments are made.
Legal Disclaimer
The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.
For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.
You can find experienced legal professionals through our Physician Contract Lawyer Directory.