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Hospital Loan Repayment nightmare

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Any one have any experience with hospital loan repayment?

I started a job in a rural area three years ago at a hospital that offers $20,000 per year towards loan repayment.  That money is then forgiven after 3 years of service on the back end.  So long story short I have been at my job now for just shy of three years and have taken out a total of 60,000 from them for loan repayment.  I had full intention of staying at this position indefinitely but circumstances at the hospital make that no longer an option, and I'm looking for a new position with a more stable environment.  My impression is that if I leave my job at this time, the hospital could ask back for approx 40,000$.. which is far too large of a sum for me to just write a check for...

Anyone have any experience with hospitals that offer promissory notes for loan repayment? Trying to figure out if there is anyway to navigate this situation that won't bankrupt me.

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Circumstances that make it no longer possible from their perspective or your own? If it's an administrative change then there is likely grounds to fight depending on the language in your contract.

If the expectation was you pay it back if you choose to leave I imagine you're out of luck.

Lawyer up regardless.

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Never had this through a hospital, but my previous employer (privately owned family practice clinic) had $10k loan repayment per year and the last 12 months of payments had to be repaid if you left.  I made it clear I would not be making a $10k lump payment as there was never anything in the contract the stated how repayment would occur.  Therefore, I offered to pay a lump sum of $7k or would pay $50 per month over the long term.  They countered with $8k lump sum and I agreed.

Previous employer had a $10k sign on bonus that had to be returned if you left within 2 years.  I was in the process of leaving after 6 months because the job was AWFUL, but in the process of accepting my next job they caught wind and I was terminated immediately.  They called asking about the $10k shortly after I was terminated, I stated I didn't have it (I really didn't).  They called again 1 month later and sent an email.  I left a voicemail stating I was open to discussing options and replied to the email as well.  I have both for my records.  I never heard back, but again have the records showing I was the last to contact.  It's been over 3 years since and I don't plan to follow up...

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4 hours ago, MediMike said:

Circumstances that make it no longer possible from their perspective or your own? If it's an administrative change then there is likely grounds to fight depending on the language in your contract.

If the expectation was you pay it back if you choose to leave I imagine you're out of luck.

Lawyer up regardless.

I was brought on to work with one surgeon who left abruptly after admin was trying to rework his contract.  Now they have me sort of in limbo helping another surgeon while they scramble to hire someone else.  About 90 physicians have left the hospital in the past 6 months due to admin.  So from my perspective its not a stable work environment in the long run.  But I could see it easily getting to the point where they push me out. 

Interestingly I don't have a contract. They didn't have contracts for PAs or NPs when I signed on but apparently are going to be transitioning us all to contracts this year.  So basically I have only this promissory note and my original signed offer letter.

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I have to ask:  If you're "just shy" of your 3 year commitment, why not just tough it out?  Sounds like it's worth $40G to you.

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25 minutes ago, LKPAC said:

I have to ask:  If you're "just shy" of your 3 year commitment, why not just tough it out?  Sounds like it's worth $40G to you.

exactly my thoughts

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4 hours ago, Cideous said:

exactly my thoughts

So basically 20,000 is given out over the course of one year for each note.  Then to forgive it you owe them three years of service starting the year after that money was given.  So for my first year I collected money over one the course of the year, then at the start of my second year the note starts to be forgiven.  However the notes run concurrently.  So for my second year I started collecting another 20,000 given out over the course of the year, and same with my third year, all while slowly having my first note forgiven, ect.  My third note will stop being disbursed this Sept and then I will technically owe three more years to the hospital to have it all forgiven, assuming I didn't collect any more disbursements. 

so to sum up from this point, I have forgiven the monetary equivalent of: 2 years off my first note, and one year off my second, and nothing off the third.

If I could just hold out a few more months and have it all forgiven believe me I would! that's a no brainer- but unfortunately we are talking three more years.

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I’m not a lawyer, but it seems to me that a promissory note is a form of a contract.  You can bail, but for the amount you are talking about, It would be small beans for them to send it collections or pursue it.  You took the money and promised to pay it back.

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So, you agreed to six years for the loan forgiveness, not three?  Maybe you don't want to divulge the  reason you want to leave, but if you did, it might be easier to give advice.  For example, if you are in a hostile work environment or are being forced out, you may be able to negotiate the loan forgiveness as you leave.

Edited by LKPAC
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42 minutes ago, LKPAC said:

So, you agreed to six years for the loan forgiveness, not three?  Maybe you don't want to divulge the  reason you want to leave, but if you did, it might be easier to give advice.  For example, if you are in a hostile work environment or are being forced out, you may be able to negotiate the loan forgiveness as you leave.

Sort of.. I haven't really agreed to any specific length of time, its just this promissory note that says you need to forgive the money with years of service. But I have no other contract with the hospital.

I want to leave because it's not a stable environment with retention of providers, and right now I want long term stability in one location (to be able to maintain relationships, personal life, buy a home etc). I work in a surgical specialty practice, when we are full staffed we have three surgeons and three PAs.  The PAs each work with a specific surgeon, and we don't cross cover except maybe for vacations.  Because admin is awful they have a revolving door of surgeons and physicians leaving within a couple years of signing on.  Because my job is so specific to working with one surgeon, I don't want to be constantly put into a vulnerable position every couple of years when they push out the next guy.  I was recruited to this rural position out of school and I was content to make a life here because I loved my job and worked well with my SP. But now my SP has left the hospital and I'm in limbo.

This is the only shop in town so if I do get pushed out or end up having to work with someone I don't have a good dynamic with there are no other employment options in my speciality in this area. So my goal is to move to a slightly more populated area with more opportunities so I don't have all my eggs in one employer basket.  This was a great job right out of school because I had a great rapport with my SP and received amazing training-- but now that he's left I'm basically just waiting to see if and who they can hire to replace him. Right now I'm barely even working- they've forced me to take vacation days because they don't have work for me to do.  They say they want to keep me on, but if they aren't able to hire someone soon enough I could very well be pushed out.  Its a very uncomfortable position and even if I do withstand this storm and they hire someone else, I think this pattern will likely continue/ repeat after a couple more years.  The hospital is basically staying a float right now because of locums. 

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Hopefully they push you out and not require you pay back the loan.  

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