And so that’s really where we get into the — to your point, the uniqueness in each state. At the end of the day, I would tell you I believe firmly that California, Texas and Oklahoma will all pass through PDS rate increases. I’m hopeful that, that will be in this legislative session in 2023. And I think I think they – the legislatures that we have talked to in the States, we’ve spoken with the Governor’s offices in all three states, they understand the issue. They are supportive of the issue. I think what it comes down to sometimes Ben is sometimes there’s just other macro stuff going on. And if you take California as an example, sometimes there’s just macro stuff going on in the state that has nothing to do with nursing, children, home services that just takes the attention of a governor or a legislature away from an important issue like ours.
And so, end of the day, as Tony and I talked about in the last couple of calls, these states are going to pass through rate increases. It’s just a matter of when and how much, I’m confident that we’re going to come out of this summer with a very good outcome in all three of these states. It may not be exactly, I think, as Joanna mentioned, we’ve asked for more in each state than we’ve assumed we’re going to get in our guidance, right? And that’s just us being prudent. But we’re not asking for $1 a rate increase. I mean, we’re asking for 20%, 25%, 30%, 35%, 40% rate increases in these states because that’s what it takes to ultimately materially move the needle in the home nursing. So again, you’re hearing me be positive. California has a July 1 effective date.
Texas is a September 1 effective date, Oklahoma, an October 1 effective date. We’ll know the answer to all three of these by early June, some cases, late May. So we’re heads down for the next 90 days, driving this agenda, not only in these 3 states, but every single 1 of our 33 states, and I think we feel very confident we’re going to have a great year related to government affairs rate in PDS.
Ben Hendrix: That’s great, thank you very much.
Jeff Shaner: Thanks Ben, appreciate it.
Operator: Our next question comes from Matt Borsch with Water Tower Research. Please proceed with your question.
Matt Borsch: Hi, good morning and thanks for squeezing me in. I had a question about – I know demand trends are not an issue. You’ve got more demand than can be handled for yourselves in the industry. But how do you see that evolving on the PDS side for maybe in the near term and longer term? I mean it’s more clear we can see that the accelerators of demand on the adult home health side. Can you just talk to that?
Jeff Shaner: Yes Matt and good morning. Thanks for the question. I think – there are more children who need more home care services in America than there are home care companies to take them home are the appropriate rate. So, we don’t lose sleep at night on is our demand 18 months, 24 months, 36 months in the future, going to be less, more equal to on the PDS side of the business. I think as the federal government has leaned into home and community-based services, which is now a defined term in CMS and the federal government that’s good for us. That is a broader group of families who can receive both highly, acute skills at home, moderate acute skills at home and even lesser acute skills at home. And I think as we think of the long-term macro 10-year outlook, I think PDS has got great tailwinds from a long-term demand standpoint, it truly will come down to the supply of caregivers, both family caregivers in the home and skilled acute nurses that are coming to the home.
