Brad Bickham: Yes. First, I’ll start with the home health process improvement question. If you think about our Home Health operations, it’s certainly our smallest segment. It’s the one where we’ve done a handful of acquisitions, and now that which are necessarily characterizes kind of a platform acquisition. And so when you think about kind of integrating and looking at process within that segment of our business, there’s certainly a lot of opportunities to really get more consistency in how we do things. And so we’re looking at, one, looking at centralizing intake, looking at centralizing scheduling. And when you say centralizing, it’s really kind of focusing at these are your tasks, whether you’re in the office, in a central office or in a office out in the field, this is what you do to really kind of increase that, the efficiency of that workflow.
And particularly on the intake side, we think there’s certainly opportunities to accept more cases and improve those conversion rates. So looking forward to that project getting completed, I think we’re looking at kind of Q3, Q4 to really get that wrapped up, but very optimistic on where we stand with home health. And when you look at on the referral process, we really haven’t seen significant changes or any changes related to Medicare Advantage focusing on just a handful of providers, if you will. We still get a lot of referrals from payers on the Medicare Advantage side that we’re not going to accept just because rates aren’t there or we’re going to prioritize where we have episodic rate.
Operator: The next question comes from Ryan Langston with Cowen.
Ryan Langston: Just following up maybe on Brian’s earlier question, in terms of kind of the scale you would need to get into a new market. I guess, if you did move into a new geography, especially in the PCS side. How do we think about that in terms of necessary size, whether it be revenues or maybe comparable to maybe recent deals like [PQC] or other size parameters? Just so we can get a sense on maybe the minimum scale that you believe you need to move into a new [indiscernible]?
Dirk Allison: Well, to go into a new market, we would really like to see either immediately or a clearly defined time line to get to the top one or two market share providers in that particular state. We believe you need to be very large. We believe you need to have the ability to have a voice with the state. So if you see us entering into any new state, I think you can assume. And again, remember, states are different. So it’s hard for you to give you us, to give you a revenue because what might be a number one market share in one state certainly might not be in another. But in those various states that we’re looking at, we would like to be number one or number two going into the market.
Ryan Langston: And then just one more for me, maybe more of a philosophical question. Obviously, in the New York State budget, there were some changes to the CDPAP program that’s coming in the ’25 budget. I know that it’s kind of low single digit operating income exposure, but still a pretty decent sized state, I think the third largest in terms of revenues. I guess, do those changes and kind of maybe just some of the tone that the Governor took maybe, does that change your longer term strategy in the state going forward? Or is it kind of just steady state from here?
Dirk Allison: Well, realize that CDPAP is about 4% of our overall revenue. It’s a very small part. I know you say that’s material, but it’s for us, it’s very small. It’s a very, very low single digit margin at that from an EBITDA standpoint, and that’s not even from a bottom line standpoint. So for us, as we look at New York, it’s they’ve tried changes before. I think three or four years ago, they were going to minimize the number of folks in CDPAP. That never got implemented. I think for them to go to one EFI by the end of, by the beginning of April of next year is going to be a really a tough task. So for us, we’re going to continue to operate and do the best we can in that market. But just understand that it is one of our, one of the markets where it’s very difficult for us and it’s not, from a strategy standpoint, it’s not a market that we can do the things we’re trying to do, which is three levels of care and value-based care.
So from that standpoint, it takes a backseat as far as acquisitions and other items and investments.
Ryan Langston: And squeeze one quick one in. Hospice revenue per day up I think 3.7%, that’s pretty strong, certainly above the latest fee for service Medicare rate. Anything to call out there maybe in terms of acuity changes or geographic distribution, anything else there?
Brian Poff: No, Ryan. I think we obviously have a little bit of mix shift pretty consistently, so there’s a little bit of contribution there. But I think overall in hospice, we saw a little better implicit price concession to some of our revenue adjustment in the quarter. And the quarter than what we maybe saw the same quarter last year. I think that was beneficial this quarter to a certain extent.
Operator: [Operator Instructions] The next question comes from Joanna Gajuk with Bank of America.
Joanna Gajuk: I guess first a follow-up here on the margins and I guess some of the cost items. So gross margin in the quarter was especially in line with your prior quarters with your prior comments on the Q4 call and but EBITDA was better. So good G&A was really there at the source of assets here. So excluding stock comp and acquisition expense, right, you mentioned G&A was very close to 20%. It sounds like there’s some timing, but how should we think about the next couple of quarters? It sounds like maybe that’s a, it’s a low point from here, we should expect some increase in that ratio?
Brian Poff: Yes, Joanna, I think we’ve been at just under 20% on adjusted G&A for the quarter. I think as I mentioned earlier, our merit increases and some of those costs typically come in on March 1. So you haven’t seen a full quarter impact and majority of those are through our corporate staff, our branch staff, our G&A line, not a direct cost. So you’ll see a little bit of that go into the first full quarter in Q2. I think overall as a percentage of revenue, we would expect adjusted G&A to kind of still be in that 20%-ish. It might be a little tick up from what we saw in Q1, but fairly close and consistent.
Joanna Gajuk: And the other one in terms of volume, so you said maybe some weather impact in question occurred, by about Southwest you kind of exit the quarter, kind of back to where you thought it would be. Is that the way to think about it that kind of this was a temporary and maybe you’ve accrued some of those last visits and kind of what your thoughts, updated thoughts for the whole year when it comes to personal care volumes?
