Operator: And the next question will come from Steven Valiquette. Your line is open.
Steve Valiquette: So I guess as a follow-up to just some of these prior questions on the labor and commercial rate update. There was some conjecture for HCA that the company didn’t have quite as many commercial payer contracts up for renewal for fiscal ’23 to capture some better rates for elevated labor costs, which you had more coming up for renewal in ’24. Now that the noise levels kind of died down somewhat here in mid-23 on overall labor cost pressure versus — certainly versus 12, 15 months ago, I guess the question is do you still have confidence to potentially capture potentially slightly better than average commercial rate updates for fiscal ’24? Is labor pressure maybe still being the key variable within those discussions? Or are those going to be a little bit tougher now given that some of the pressure is subsided. Just want to get your kind of latest thoughts around that.
Sam Hazen: Well, this is Sam. Bill indicated that we’re 70% contracted on ’24 around our targeted escalation objective. Labor costs, as you mentioned, are moderating some. Yes, there’s still inflationary pressures underneath it, as one would expect. Now we have physician cost pressures with respect to pro fees. And our belief is that, that will have to be paid for by someone. And so that will become a new factor in our thinking and our justification for appropriate price increases. So our cost are not just one category. We have multiple categories, as you can see on the income statement. And all of that factors into our considerations when we’re negotiating.
Operator: And the next question will come from Joshua Raskin with Nephron Research.
Joshua Raskin: Were there any meaningful differences in the payer mix on the outpatient side, an obvious focus on Medicare and specifically Medicare Advantage volumes. And are you seeing anything in the Medicare market that would support higher levels of demand than we saw last quarter or the quarter before, anything that you feel like is inflecting?
Bill Rutherford: Yes, Josh, when I look at kind of the admissions versus adjusted admissions between the payer categories, they’re comparable. Our Medicare adjusted admissions were up 5%. Our managed care adjusted admissions were up 5%, as we mentioned earlier, fueled by emergency room growth. So I think the trends are pretty comparable among the payer categories. And that’s strengthening payer mix, that’s, I think, positive trends for us. So nothing else underneath the outpatient area that I would distinguish, other than we continue to see good commercial ER traffic. Our commercial outpatient was up pushing close to 4% as well. So again, I think they’re pretty comparable in terms of the general trends we’re seeing.
Sam Hazen: I would say, Bill, just to put a little bit of color on the outpatient. Our commercial outpatient revenue growth is clearly outpacing our Medicare outpatient revenue growth. Some of the adjusted admissions are influenced by some of the calculations, if you will. But we are seeing really solid commercial outpatient revenue growth, again, influenced by the ER, influenced by surgeries, which are represented by roughly 50% to 55% commercial. So good growth there. And all of that yields solid commercial revenue growth.
Operator: There are no further questions. At this time. Mr. Frank Morgan, I turn the call back over to you.
Frank Morgan: Bailey, thank you so much for your help today. Thanks, everyone, for joining our call. I hope you have a wonderful rest of your week. And I’m around this afternoon if we can answer any additional questions you might have. Thank you very much. Have a great day.
Operator: This concludes today’s conference call. You may now disconnect.
