Jeffrey Shaner: That’s a great point. And I think we’ll — our comments in the script were early. But yes, we like our peers, we’re starting to see improvement in the overall labor markets. And I would tell you, Taji, for the first time since COVID hit, Q3 acted like Q3 had acted for the last 20 years, pre-Covid, meaning we felt schools being out in the summer, we felt that our low summer seasonality low and then come Labor Day, which typically was always kids going back to school and our business bumps because of that. We saw the bump both in both in demand hours but also in supply of caregivers looking for work. And so I’ll call it the last 8 to 10 weeks for us have been really nice both from a recruitment from a hiring perspective, but also just people, our current workers, specifically in the PDS segment wanting to work more hours, and we’ve had a really nice kind of 8 to 10-week run.
We expect that to continue through the end of the year up until the holidays. So nice to see the business beginning to get back to what it was pre-2020. As we think about 2024, Taji, it relates to that, Matt talked about, we still gauge inflation, wage and rate by our spread per hour. And it was 10 35 and Q3. It will land somewhere in that 10 to 10 50 range in Q4. And we still feel like that’s the right measurement for how we should think about margins in the PDS segment — we’ll probably be chasing home health a little bit, right? So I think our disciplined approach to home health is fundamentally rooted in the fact that we understand we cannot chase low-margin business and try to make it up with volume in home health that we absolutely are staying disciplined to the fact that episodic business is the most important business to us in the home health side of the business.
And although 75% may be a bit strong to carry into ‘24, certainly, our goal is to be at or above 70% in the last part of that question, Matt, was about margin — potential margin expansion.
Matt Buckhalter: Yes, Jeff. I think on the rate side, you said it really well with 2019 rate increases so far in 2023. And so it just shows how much value that we’re providing to our payers and our patients as well. There are some states that have done a great job of being out in front of him. So that still have to play catch up to this as well. As we do get those rate increases, Taji, we will pass those wage benefits through and other benefits to our caregivers. And that’s to drive volumes and increase patient care most importantly as well. On kind of the SG&A front, our team has done a phenomenal job in addressing direct and indirect cost and looking for opportunities to just be more effective and more efficient. I mean they’ve really done a phenomenal piece of that.
We’ll continue to look at our corporate infrastructure. We’ll continue to look at field infrastructure. and invest where it’s important so that we can drive our business, drive volumes, drive growth, but also provide great clinical and quality care to our patients. Thanks, Taji. Appreciate it.
Operator: Thank your next question today is coming from Peter Stringer from Deutsche Bank. Your line is now live.
Unidentified Analyst: You’ve got Benjamin Schaefer [Ph] on for Peter today. So just a quick question on the cash flows. I heard you guided to positive CFO for the full year, and it’s currently $26 million year-to-date got that correct. So where do you guys see it going in Q4? Thanks.
