I can’t give you an exact contribution, but we are really pleased to see that it is taking its rightful place in some of the surgeons’ treatment algorithms and is becoming a product that they regularly use in certain use applications.
Mike Kratky: Understood. Thanks very much.
Operator: Thank you. And the next question comes from Catlin Cronin with Canaccord Genuity.
Unidentified Analyst: Hey, guys. This is George on for Catlin. Yes, so I just have a couple of questions on our end. Just first, what was procedure growth like in the quarter on a percentage basis year-over-year? And then maybe talk a little bit about just the general health of the overall market you’re seeing in ’24.
Karen Zaderej: I’m sorry, again. It was hard to hear the question. If you could repeat the question?
Unidentified Analyst: Yes. Do you hear me now? Yes, so our first question was just understanding how procedure growth was like in the quarter on a year-over-year basis. And then just more generally, on the health of the overall market that you’re seeing in ’24.
Karen Zaderej: Yes. We’ve seen good procedure growth in — so let me break each of the segments. So trauma has seasonality to it. So we saw the seasonality that we would expect in a Q1 with the noted exception of the timing of the step up. As people start to get more active, we saw that pushed into April instead of the trail part of March. In terms of some of our scheduled areas, breast neurotization, we continue to see increasing demand by patients with strong interest in getting the Resensation technique as a part of their reconstruction, whether they have either an implant based or deep — a flat-based reconstruction. So we continue to see interest and as we train surgeons and surgical teams, expansion in breast neurotization and growth in that area.
In Oral Maxillofacial, we continue to see — in Oral Maxillofacial and pain are two smaller areas. We continue to see surgeon interest and are seeing procedural growth continuing, where they’re doing neurotization in those procedures or managing the pain with the surgical treatment of the nerves. So we saw a good cadence through the quarter in all of those areas and think that, again, we are on a trajectory of continuing to see growth, in particular, in breast as we train more surgeons and get more surgeon teams engaged.
Unidentified Analyst: Yes. Great. That’s very helpful. And then just one last one from us. Do you have any further clarity on the gross margin cadence in ’24 as you kind of sell through your old inventory from your previous facility?
Nir Naor: Yes. So it’s — as we mentioned in the last earnings call, the gross margin in the first half of the year is going to be higher than that in the second half of the year, where the main reason is that the inventory sold in the first half of the year comes from the one produced last year in the previous facility at a bit of a lower cost. Whereas the ones sold in the second half of the year is for, once produced, will be produced at our current facility at a bit of a higher cost. And that said, again, the guidance we reiterated for the entire year of 76% to 79%.
Operator: Thank you. And the next question comes from Ross Osborn with Cantor Fitzgerald.
Ross Osborn: All right. Good morning. Thanks for taking the questions. Starting off in developed [indiscernible] on core channel, which you did touched a bit service mix from …
Harold Tamayo: Hi. Good morning. So starting off and given a focus on core accounts, would you discuss what the site of service mix looks like for core accounts and your penetration level in hospital outpatient?
Karen Zaderej: Again, it must be our speaker, but we are — if you could repeat the question. It was hard to hear.
Nir Naor: Sure. I was just asking what the site of service mix looks like for your core accounts and then the penetration level and hospital outpatient.
Karen Zaderej: Yes. No, thank you. So our site of care, we — in our core accounts, we tend to be Level 1, Level 2 or Level 3 trauma centers as the majority, and then some specialty hospitals where you may see it may be driven in that case by a breast center or it might be a military center that does nerve repair. So those are typically the best targets for us as well as, obviously, academic teaching hospitals. There are, however, in our core accounts, some freestanding ambulatory surgery centers. And that really is an artifact of the fact that the threshold is $100,000. That could be one active surgeon who’s doing nerve repair. Obviously, if it is a freestanding ambulatory surgery center, it doesn’t have the same potential as a large academic center.
So when I say our biggest centers are over $1 million today, that’s not going to be the ambulatory surgery center. That’s going to be a Level 1, Level 2, Level 3, trauma center, hospital or academic center. So our focus, again, is continuing to build those high potential accounts, building out the core accounts and continue to drive that business. Now when I talk about a Level 1 trauma center, that’s going to be a mix of inpatient and outpatient procedures. So we do see actually a fair amount of the surgery that’s done in trauma is an outpatient procedure. Where that’s possible, they’re going to try and move that patient through the hospital in under 24 hours and technically be classified as an outpatient procedure. The ambulatory surgery centers are the ones that we have not typically been as focused on.
