It’s stable year-over-year and is seeing margin improvement year-over-year. But there are three new facilities that we’ve opened in the second half of 2022 that do carry a much higher labor load as their volume and revenue ramps. So that did have an impact on both the SWB metric as well as our margin. CenterPoint perform well in the fourth quarter. We saw that just the team overseeing their integration, do a fantastic job throughout the year, bringing improvements to the performance of that acquisition. But it did also have an impact on our margin as — from the acquired date and even in the fourth quarter that business has a lower margin than the company average. So there’s a few items like that that did impact our labor metrics and some investments we’ve made at the corporate level, which are having a positive impact on the company as we move into 2023 also are reflected in that SWB and in the margin.
Kevin Fischbeck: Great. Thanks.
Operator: Our next question will come from Andrew Mok with UBS. Please go ahead.
Andrew Mok: Hi, good morning. Chris, you mentioned some new investments and facility openings in your prepared remarks, but it wasn’t entirely clear to me what changed versus the previous outlook. Can you help us better understand what specifically is driving the higher revenue outlook for 2023? And why that’s causing a narrowing of the EBITDA range at this stage? Thanks.
Chris Hunter: So Andrew, just to clarify, you’re looking for more detail on the IT investments?
Andrew Mok: Just the 2023 revenue outlook versus the previous outlook you gave at the Investor Day. And why that’s causing a narrowing of the EBITDA range at this stage?
David Duckworth: Yes. I mean Andrew, we of course did provide initial guidance €“ and this is David. We have provided initial guidance in December, earlier than the company typically provides our guidance. And we did as we updated that guidance in February, really viewed de novo range as a tightening of what we provided in December. I’ll say since December, as we’ve gone through and finalized our budgeting process as we’ve also seen trends through the fourth quarter and the start that we’ve had to Q1, we did increase our revenue outlook. And the key driver of that is that we see our volume accelerating. We talked about the 4% same facility volume growth for the fourth quarter, now accelerating for 2023 to a range of 4% to 6%.
And we are starting Q1 at the high end of that 4% to 6% range. So we’re really pleased with the volume outlook, and it is slightly stronger than what we had projected in December, given some of those strong trends to start the year. The EBITDA outlook, we do believe that that incremental volume drives incremental EBITDA as well. But our view is for now given it’s early in the year, we just tightened our EBITDA range but kept the midpoint where it was. And of course, things like wage inflation have also been factored in just the updated view around that compared to projections that we had in December. Hopefully that helps.
Andrew Mok: Got it. That’s helpful. And then on the CapEx, I think it’s been about two years in a row now where you’ve cut the growth CapEx about $85 million lower versus initial expectations with the step-up in growth CapEx $375 million this year. What’s your confidence level in getting that completed this year? Thanks.
David Duckworth: Well it’s a good question because as we talked about throughout 2022, we have been looking forward to breaking ground across all of those new facilities that we’ve had in the pipeline just ready to start construction and work towards the opening of those new joint ventures and other facilities and didn’t have as much visibility a year ago, as we talked about our CapEx guidance as we feel like we have today. There are a number of projects that have now broken ground. And at that point, we do have higher visibility and have a higher confidence level. And so we’re expecting for that step-up to occur and that’s reflected in our guidance. And we’ll continue to provide an update as to the timing of those projects.
