Recover Revenue. Protect Your Reputation. Stay Compliant.
California changed the rules for medical debt collection. A legitimate patient balance can still be recovered—but consumer credit reporting is generally off the table, hospital lawsuits cannot begin before 180 days after initial billing, and qualifying patients can still seek charity care or discounted payment even after the billing process has started.
Collect911 helps California medical and dental providers separate collectible patient responsibility from insurance issues, financial-assistance accounts, and legally restricted balances before recovery begins. Newer accounts can use a cost-effective fixed-fee approach, while older and more difficult balances can move to contingency collections—without treating every unpaid account the same way.
California’s current law prohibits furnishing medical debt information to consumer credit reporting agencies, while the state’s hospital fair-billing rules contain additional requirements around financial assistance and collection activity.
At a Glance: Why CA Businesses Choose Us
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Industry-Leading Recovery Rates: We outperform national averages by leveraging advanced skip-tracing and credit reporting.
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100% Compliant: Strictly adhering to the Rosenthal Act, HIPAA, and FDCPA.
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4.8/5 Star Rating: Trusted by clients with over 2,000+ Google Reviews. Rated 4.8 /5.
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Statewide Reach: Serving San Diego, San Jose, Sacramento, Fresno, and every city in between. Licensed in all 50 states, so if your debtor crossed state lines, we can continue to pursue collections.
Two Flexible Pricing Models
We don’t believe in one-size-fits-all. Choose the plan that fits your cash flow.
1. Contingency Service (No Recovery, No Fee)
Best for older or difficult debts. We shoulder the risk.
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Zero upfront cost.
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We only get paid when you get paid.
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Includes comprehensive skip-tracing, credit bureau reporting, and litigation support if needed.
2. Fixed-Fee Service (Pre-Collection)
Best for recent debts (under 90 days). Keep 100% of the money collected.
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Pay a small, flat fee per account.
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Monies are paid directly to you.
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Acts as a gentle extension of your billing department to nudge payments without burning bridges.
Industry-Specific Expertise
For Medical & Dental Practices
Patients are not just debtors; they are your community. California’s medical landscape requires a delicate touch. We specialize in collecting for Dentists, Urgent Care, and Private Practices while strictly adhering to HIPAA and California medical billing regulations. We recover the funds without triggering malpractice claims or negative online reviews.
For Commercial (B2B) Business
Don’t let unpaid invoices choke your cash flow. From Silicon Valley SaaS contracts to Construction liens and Freight/Logistics disputes, we understand commercial leverage. We report to commercial credit bureaus (Dun & Bradstreet, Experian Business), giving debtors a powerful incentive to pay you first to protect their own credit lines.
Ironclad Compliance & Security
California has some of the strictest collection laws in the nation. One mistake can lead to a lawsuit. We protect you by handling the legal complexities.
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The Rosenthal Fair Debt Collection Practices Act (RFDCPA): We strictly follow California’s specific extension of federal law, ensuring no harassment or unfair practices.
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Data Security: Your data is protected by 256-bit encryption and our client portal features Two-Factor Authentication (2FA).
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Statute of Limitations: We monitor California’s 4-year statute on written contracts so you never miss a legal window to collect.
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No Hidden Fees or Commitments: Enjoy our services without any minimum balance requirements, minimum number of accounts, setup fees, or binding contracts. Our customer agreement is open-ended and non-committal.
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Complimentary Credit Bureau Reporting: Benefit from free credit bureau reporting, enhancing the effectiveness of our collection efforts.
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High Recovery Rates with Full Compliance: We achieve excellent recovery rates while strictly adhering to FDCPA, HIPAA, TCPA, and GLBA regulations.
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Personalized Support: Beyond our central customer service team, you’ll have a dedicated Sales Representative assigned to you for direct, personalized assistance.
Wage Garnishment
- California has specific laws that limit the amount of wages that can be garnished to repay a debt. The state provides greater protection than federal law, allowing only the lesser of 25% of a worker’s disposable earnings or the amount by which a worker’s disposable earnings for the week exceed 40 times the state minimum hourly wage.
- Certain types of income, like social security, disability, and retirement, are exempt from garnishment in California.
Recent Recovery Results:
Los Angeles Multi-Specialty Practice — Fixed Fee — 70% Recovered
A Los Angeles physician group identified $18,600 in relatively recent patient-responsibility balances after insurance payments and contractual adjustments had been posted.
The practice moved the eligible accounts into its fixed-fee collection program rather than continuing repeated front-desk follow-up.
Placed: $18,600
Recovered: $13,020
Recovery Rate: 70%
The practice preserved a softer approach for current patients while clearing a substantial portion of aging A/R.
San Diego Specialty Clinic — Fixed Fee + Contingency — 56% Recovered
A specialty clinic accumulated $29,750 in mixed-age patient balances. Some accounts were still relatively fresh, while others had already gone through repeated statements and telephone follow-up.
Newer accounts entered fixed-fee recovery first. Harder balances were later escalated to contingency collections.
Placed: $29,750
Recovered: $16,660
Recovery Rate: 56%
Separating the portfolio by age allowed the practice to avoid paying contingency fees on every account.
Sacramento Outpatient Provider — Contingency — 46% Recovered
A Sacramento outpatient provider referred $42,300 in substantially aged patient receivables after its internal billing team had exhausted routine follow-up.
The accounts were assigned to the contingency collection program.
Placed: $42,300
Recovered: $19,458
Recovery Rate: 46%
Despite the age of the balances, the provider recovered nearly half of the referred receivables and incurred collection fees only on successful recoveries.
Frequently Asked Questions:
Can a California medical provider report an unpaid medical bill to the credit bureaus?
Generally, no. California Civil Code Section 1785.27 prohibits furnishing information about medical debt to a consumer credit reporting agency. If a person knowingly violates that prohibition by reporting the medical debt, the debt can become void and unenforceable. California therefore requires medical providers and their collection partners to rely on compliant recovery methods rather than consumer credit reporting. Limited statutory exceptions can apply in unusual situations, so account type and payment history should be reviewed before collection activity begins.
What notice must California medical debt contracts include after July 1, 2025?
A written contract entered into on or after July 1, 2025 that creates medical debt must contain California’s required disclosure explaining that the debt holder is prohibited from reporting the medical debt to a consumer credit reporting agency. Current California law also provides that a written medical-debt contract entered into after that date that omits the required language is void and unenforceable. Medical and dental practices should therefore review newer patient financial agreements before referring balances for collection.
What must a California hospital tell a patient before sending a bill to collections?
Before assigning a hospital bill to collections, California law requires the hospital to provide a notice containing specific information. This includes the dates of service, the name of the company receiving the account, information on obtaining an itemized bill, the health coverage the hospital had on record, a financial-assistance application, and information showing when the patient was previously notified about financial assistance. This documentation is important when hospital-originated accounts are transferred for recovery.
Can a California patient apply for hospital financial assistance after the bill is already overdue?
Yes. California hospitals cannot impose a deadline that prevents an otherwise eligible patient from applying for charity care or discounted payment simply because the bill has aged. Eligibility can be determined when the hospital receives the required financial information. Generally, uninsured patients and patients with high medical costs whose family income is at or below 400% of the federal poverty level must be eligible to participate in the hospital’s charity-care or discount-payment program, although special rules apply to certain rural hospitals.
Does California’s 180-day rule mean a hospital cannot use a collection agency for six months?
Not exactly. The 180-day rule is more specific. A hospital, its assignee, or another owner of the hospital debt cannot begin a civil lawsuit against the patient for nonpayment until at least 180 days after initial billing. California also places separate conditions on selling hospital debt to a debt buyer. Before assigning a bill to collections, the hospital must provide the required collection and financial-assistance notice. This is why the age of the account and the type of collection action matter.
What happens if a financially qualified California hospital patient stops making payments?
California hospital financial-assistance payment plans are subject to special protections. A reasonable payment plan generally cannot require monthly payments exceeding 10% of the patient’s monthly family income after essential living expenses, and eligible extended payment plans are interest-free. If the patient misses all consecutive payments for 90 days, the hospital or collection partner must make a reasonable attempt to contact the patient and provide an opportunity to renegotiate before declaring the plan no longer operative. A civil action cannot begin while the qualifying payment plan remains operative.
How to Prepare a California Medical Account for Collections
Step 1 — Verify the patient-responsibility balance
Post insurance, Medicare, Medi-Cal, contractual adjustments, refunds, and other third-party payments before deciding that the remaining amount belongs to the patient.
Step 2 — Identify whether hospital-specific rules apply
A private physician or dental balance and a hospital-originated medical debt may be subject to different requirements. Flag hospital accounts before deciding what collection actions are available.
Step 3 — Check financial-assistance status
For applicable hospital accounts, confirm whether the patient has applied for or may qualify for charity care or discounted payment. Do not treat an unresolved financial-assistance account like ordinary bad debt.
Step 4 — Confirm that required notices were sent
For hospital debt, retain the collection notice, dates of service, financial-assistance information, insurance information, account statements, and documentation supporting the balance.
Step 5 — Remove consumer credit reporting from the strategy
California generally prohibits furnishing medical debt information to consumer credit reporting agencies. Build the recovery workflow around compliant communication and collection activity instead.
Step 6 — Choose the appropriate recovery path
Recent, well-documented balances may fit a fixed-fee collection program. Older, harder-to-locate, disputed, or previously unsuccessful accounts may be better suited to contingency collections.
Ready to Clear Your A/R Ledger?
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