Six Pain Points We Solve
PO-mismatch stall
AP refuses to pay an invoice without an open PO; meanwhile delivery was accepted against a prior blanket.
"Clinical concern" reduction
Procurement withholds payment citing unspecified "quality issues" without FDA MDR or incident documentation.
Bundled capital holdback
Hospital withholds consumables payment pending capital-install punchlist completion.
GPO price claims
Buyer retroactively asserts GPO tier pricing should apply to list-priced invoices.
Ownership / successor disputes
ASC is sold; new owner denies liability for prior-entity receivables.
90-day "review" limbo
Cordial back-and-forth with AP that never produces payment or clear dispute.
California Legal Framework
| Statute | Use |
|---|---|
| CCC §2-709 | Action for the price on accepted goods. |
| CCC §2-706 | Seller's resale remedy for unaccepted units. |
| CCC §2-708 | Market damages on repudiation. |
| CCC §2-710 | Seller's incidental damages (return shipping, restocking). |
| CCC §2-725 | 4-year limitations on sale of goods from tender. |
| CCP §337 | 4-year limitations on written contracts (MSA). |
| CCP §337a | Open book account — 4 years from last entry. |
| Civ. Code §3287 / §3289 | Prejudgment interest at 10%. |
| Civ. Code §1717 | Reciprocal attorney's fees. |
| B&P §17200 | Unfair competition pattern claims. |
| CCC §§9103, 9324, 9502 | PMSI on capital equipment and non-implanted inventory. |
| Civ. Code §§2793, 2814 | Physician-owner guaranty enforcement. |
| Civ. Code §3439 | Fraudulent-transfer recovery if ASC assets transferred without fair consideration. |
Savings Calculator
Enter your unpaid receivable to compare LegalCollects.ai 15% against a typical 33% agency fee.
Fee Comparison at Common AR Sizes
| Recovered | Traditional (33%) | LegalCollects (15%) | Savings |
|---|---|---|---|
| $35,000 | $11,550 | $5,250 | $6,300 |
| $75,000 | $24,750 | $11,250 | $13,500 |
| $150,000 | $49,500 | $22,500 | $27,000 |
| $320,000 | $105,600 | $48,000 | $57,600 |
| $800,000 | $264,000 | $120,000 | $144,000 |
Case Studies (Anonymized)
30-Day Demand Overlay for Medical Supply
- Day 0: Demand letter to AP, CC Contract Management + CFO, with invoice-by-invoice ledger and delivery signatures.
- Day 3 AI call: Navigate AP phone tree, capture contact name, document commitment.
- Day 5: Payment-plan offer with wire instructions; GPO verification path if raised.
- Day 7 AI call: CFO / Controller escalation framing.
- Day 12 AI call: Post-deadline final-chance call and written outline.
- Day 14 attorney review: UCC-1 PMSI filed on remaining inventory; draft complaint with §2-709, §337a, §3287, §1717 counts.
- Day 16: Pre-filing email with draft complaint attached.
- Day 25: File and serve; targeted discovery on GPO roster, MDR records, corporate-successor docs.
Intake Checklist
- Master Supply Agreement / distribution agreement
- Purchase orders (full set for disputed period)
- Invoices and delivery/receipt confirmations
- Running ledger (Stripe/ACH/check register)
- Any quality-complaint correspondence (emails, tickets)
- GPO roster and tier documentation (if raised)
- Entity-structure documents (ASC owners, successor info if applicable)
- Any physician-owner guaranty or personal indemnity
FAQ
Does HIPAA bar collections?
No — a distributor's collection file contains POs, SKUs, and invoices, not PHI. Communications are addressed to AP and Contract Management, not clinical staff.
Can we pursue implanted devices?
No — PMSI self-help on implanted devices is commercially and ethically impracticable. PMSI is used on non-implanted inventory and capital equipment.
What if the buyer claims GPO pricing?
Produce GPO roster and tier evidence; where tier or SKU does not match, list pricing governs.
What is the statute of limitations?
4 years under CCC §2-725 for sale of goods (from tender); 4 years under §337a for open book account (from last entry).
How long does collection take?
Median resolution is 18–35 days for matters with clean documentation. Disputed matters with GPO or successor issues resolve in 45–90 days.