The Clinton Herald, Clinton, Iowa

Local News

July 3, 2013

Judge hears lawsuit

CLINTON — The civil trial between a former Clinton doctor who is being sued by Medical Associates concerning $100,000 in alleged overpayment to him in the form of advances took place Tuesday in Clinton County District Court.

Medical Associates filed suit against Dr. Christopher Martin in late 2011 claiming he was in breach of contract for being overdrawn on his account with Medical Associates by more than $100,000 when he left the company in 2009, according to court documents.

Martin entered into a two-year contract to be an associate physician with Medical Associates that began on July 9, 2007. During the first year of his contract, Martin was to make an annual salary of no less than $250,000. In the second year of his employment as an associate physician, Martin would be paid according to his proportionate share of Medical Associates' net profits as determined by the company's policy, which essentially measures the physician's productivity and adjusted gross charges, court documents state.

Martin received "draw" checks every two weeks based on projected income for the given year, according to court testimony from Medical Associates CFO Jim Dobbyn on Tuesday.

"The draw is an advance against earnings, which are determined on an annual basis," Dobbyn said. "We advance money to physicians. It's a guestimate."

Dobbyn stated during court Tuesday that Martin would have received a monthly report detailing his productivity and that of the other physicians that would have given him an idea of what his draw should have been.

He went on to say that the draws are adjusted on a quarterly basis based on the company's income. Dobbyn also said that being overdrawn on an account is not a unique situation and that doctors typically cut Medical Associates a check for the amount or in the case of less significant amounts, the overpayment is accounted for in future draws.

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