Income Guarantee Agreement - Physician Contract Glossary

Income Guarantee Agreement

Definition

A specific type of hospital support ensuring physicians receive a minimum income if patient collections fall below a set threshold.

Examples in Context

"The hospital guarantees a 12-month minimum income of $200,000. Any collections above this amount must be repaid as outlined in this Agreement."

"If Physician's net collections fail to meet the guaranteed threshold, the Hospital shall provide additional funds to meet the established guarantee amount."

Implications for Physicians

• Provides financial stability during the early stages of practice growth.
• Commonly tied to practicing in a specific geographic area for a defined period.
• May require repayment if earnings exceed the guaranteed amount.

Negotiation Tips

• Clarify the threshold calculation method (e.g., gross collections, net collections).
• Ask if excess repayments are waived after meeting certain milestones.
• Negotiate a cap on repayment obligations or interest charges.

Red Flags and Pitfalls

• Hidden interest on guaranteed amounts, increasing repayment costs.
• Overly restrictive obligations requiring extended time in one practice location.
• Unclear language regarding repayment triggers and deadlines.

Related Terms

• Hospital Assistance Agreement
• Repayment Provisions
• Retention Provisions

FAQs

• "Do I have to repay the guaranteed amount if I meet my collections goal?"
  • Yes, most agreements require repayment of any overage. Confirm repayment conditions in writing.
• "What happens if I leave before the guarantee period ends?"
  • In most cases, you may need to repay the remaining guaranteed funds. Negotiate for partial forgiveness if your departure is due to unforeseen circumstances.
• "Can I negotiate to have the guarantee forgiven?"
  • Yes, many agreements offer partial or full forgiveness if you remain employed for a set duration. Ensure this is detailed in the contract.

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.