Guaranteed Financial Assistance - Physician Contract Glossary

Guaranteed Financial Assistance

Definition

A pledge, often by a hospital or practice, to cover shortfalls in revenue during an initial period.

Examples in Context

“Hospital will provide guaranteed financial assistance for up to 12 months to support Physician's transition into practice. Any surplus in collections exceeding the guaranteed amount shall be reimbursed by the Physician at the end of the agreement term.”

Implications for Physicians

• Ensures stable income while building your patient base.
• May convert to a repayable loan if collections exceed a threshold later.

Negotiation Tips

• Clarify repayment obligations and potential interest rates.
• Ask for an itemized statement showing how guaranteed funds are calculated.
• Confirm if forgiveness conditions apply (e.g., practice duration or patient volume).

Red Flags and Pitfalls

• Repayment obligations disguised as "guaranteed assistance."
• Complex repayment schedules that penalize early termination.
• Strings attached, such as mandatory practice in a specific region.

Related Terms

• Loan Forgiveness
• Hospital Assistance Agreements
• Repayment Provisions

FAQs

• Is guaranteed financial assistance free money?
  • No, many agreements require repayment if your collections exceed the guaranteed amount or if you leave the practice early.
• Does guaranteed assistance impact my bonus?
  • Yes, if your contract specifies that excess collections are deducted from future bonuses.
• Can I negotiate forgiveness terms?
  • Yes, many contracts allow forgiveness if you meet certain milestones like remaining employed for a set period.