David Larsen : Can you talk about any conversations you might be having with your base around the RADV rule or the final rate notice? It seems to me like physician practices will need basically all of the assistance they can get in terms of like coding and implementing restricted and effective narrow networks. Is that driving up demand for your platform or not? Just some thoughts there would be helpful.
Steve Sell: Yes. David, really appreciate the conversation question. And I’ll just say this weekend, we’re going to be with 200 physicians in Florida. And the regulatory environment and how it is increasing the acceleration of value and how together we can take advantage of that and even perform better is really kind of at the heart of that discussion. So I think from a opportunity for us, we’re saying that we can just perform better on value. We will work with them very closely to make sure that we have high accuracy from a coding perspective. We’ve done a very good job to date. We’ll continue to do that. And so we’re constantly looking at how we can make improvements. We’ll walk them through that this weekend. They want to make sure that we’re all doing things the right ways.
If you think about the power of — what I’m talking about $550 million of medical margin in 2023, roughly half of that goes back to be invested in these practices. And so it’s a tremendous catalyst for them, tremendous catalyst for their communities, but we just want to make sure that we’re doing things in a really smart way. So it’s a key part of that. And then obviously, what that impact is from that advanced notice. We’re talking to them because it’s different by market. but it’s not the final notice. And we’ll find out in a month what that looks like. So we’ll make preliminary plans around that and then adjust as we see what that final looks like.
Operator: Our next question comes from Jamie Perse from Goldman Sachs.
Jamie Perse: Just wanted to follow up on the platform cost I think you said those were higher than expected due to infrastructure to scale over 2023 and beyond. Can you elaborate on what these investments are a little bit more? And should we think about them as accelerating growth, accelerating profitability or just necessary investments to support what’s already in place?
Tim Bensley: Yes. And first of all, I think we’re really pleased with our ability to get leverage out of platform support costs. I mean I think we talked about, again, platform support costs as a percentage of revenue overall for 2022 was down by more than another 100 basis points, and we continue to see — expect to see that improvement year-over-year as we move forward. I mean, I think getting that leverage against platform support cost is obviously a big part of how our model works. Specifically in Q4, we did have the opportunity to step up platforms forecast. And you kind of see it when you look across the quarters and the higher absolute level of spend in Q4 versus the first 3 quarters. And that was really to support this very large class of 2023 coming in.
So we’re able to do things like kind of proactively increase our technology infrastructure and data storage, for instance. So we were able to do these kinds of things that would essentially put us in a position to get that huge class of 2023 on board and really put us in a position to scale our business over time. So I don’t think it’s indicative of anything going forward other than we’ll continue to get great leverage out of platform support costs, but I think we’re in a good position to do that. Now of course, in Q4, one of the reasons we’re able to do that is we did have a little bit higher direct contracting EBITDA flow through that offset that increase.
