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Physician Contract Glossary · Ownership & Partnership

Collateral for Repayment

Collateral for repayment is property or assets you pledge to secure a loan or advance, which the lender can claim if you default.

When a hospital or group advances you a substantial loan, the agreement may require collateral: an asset the lender can seize if you fail to repay. More aggressive arrangements ask physicians to personally guarantee repayment, putting personal assets at risk. This turns a recruitment loan from a soft obligation into a secured debt with real teeth.

WHAT TO WATCH FOR

Resist pledging personal collateral or signing a personal guarantee for a recruitment advance where you can. If collateral is unavoidable, understand exactly what is at risk and under what conditions the lender can claim it.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

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