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.
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.
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