Case Study #1: Enabling a Doctor's Practice to Increase the Bottom Line
Before coming to Progressive Management, this physician managed his own billing. He wrote the checks, paid the bills, and did the bookkeeping. As the practice grew, this became more labor intensive.
Recognizing that he was spending less time with his patients and more time on the books, he hired Progressive Management to step in, solely based on the benefit that he would see more patients again.
However, he quickly saw other benefits of working with the company.
Using our banking relationships, we opened accounts that accrued no service charges. He used to pay $750 per month in service charges, including bounced checks and uncollected funds fees. That immediately saved him $9,000 per year.
He also gave the Internal Revenue Service and the State of New York over $12,000 per year in penalties and interest on late or insufficiently paid payroll taxes and depositories. Working with Progressive Management, that stopped as well because of filings that were done on a timely basis.
Finally, because he no longer concerned himself with the bookkeeping, he was seeing more patients. He estimated that because of Progressive Management’s involvement, he bills over $50,000 more per year.
Progressive Management was able to immediately bring over $70,000 to his bottom line.
Our fee structure also saved him money. If he had hired a full time bookkeeper, he would have paid well over $40,000 direct compensation, plus payroll taxes and fringe benefits. Our fee structure was substantially less.
Case Study #2: Proactive Management Saves Individual Thousands in County Tax Bills
Progressive Management has a high net-worth client who escrowed his real estate taxes with his mortgage company.
We received a letter from our client’s mortgage company saying that he had a negative balance in his escrow account. They had just paid his town tax of $10,500 and he was now minus $6,000.
Seeing that something did not look right, we checked last year’s escrow analysis and found the town tax was only $4,000.
Progresive Management proactively contacted the county’s tax collector. The collector informed us that our client has not paid a school tax bill of $5,600. Additionally, the county added interest and penalties of $591.83 for failure to pay.
After further analysis, we found that the mortgage company showed these taxes as being paid on their escrow analysis. The net result was a $6,200 saving by having Progressive Management looking after the details.
Most of the time, errors like these simply fall through the cracks because many people believe what is on their bank statement is the truth. Additionally, high net worth, busy individuals do not have time to find errors or dig deeper into the details.
Case Study #3: Ensuring An Entertainment Executive Gets His Full Rewards
Progressive Management has a client who is the director of a major motion picture. Because of the success of the movie, he received as additional compensation 10% of the true gross revenue of the picture.
When the picture was sold to television, it was packaged with two less successful movies whose combined gross income was only 25% of the hit movie.
When allocating the television proceeds, the movie studio allocated the television sale proceeds equally to all the pictures despite our client’s successful product.
Progressive Management stepped into an uncomfortable situation and subsequently got the studio to relook at the compensation. Our client received hundreds of thousands in additional income because of our involvement in his business.