Ted Wahl: That’s right – and the majority of that benefit would have related – Andy, are you there? I’m sorry. We lost you for a moment. But yes, the majority of that – you’re right. It was based off of our annual actuarial review and the majority of that benefit related to claims experience and trends for 2020 and 2021 as well as a portion of it for 2022, but that’s where the vast majority of it related to.
Andy Wittmann: Okay, sorry about the background noise here. Just Ted, maybe thank you for clarifying that and on the AR reserves, can you just talk about, I don’t know, your overall qualitative assessment since the CECL is more quantitative. What can you tell us about fees getting reduced? They’ve obviously kind of working back up here after a couple of years of better performance on the AR ’22 had some more blemishes. And I just – I mean, I know these things are always unpredictable, but just you’ve gone through the whole portfolio, you’ve talked to all your customers, kind of where are you on this one? And how are you feeling about 2023?
Ted Wahl: Well, look, I think in terms of 2023, we would expect as the industry is going through its prolonged, but steadily improving recovery, ongoing challenges in the first half of the year, right? It’s never easy to collect what we bill, it’s easy to say. It’s always been more difficult to execute on. But the industry is on a clear and positive trend towards recovery, but it’s still not recovered. So, we’re geared up as we always have been, but in particular, our sense is, our heightened in this – on still challenging environment. But we’re optimistic if you compare it to where our election experienced last year where we had a $60 million shortfall and that really all took place in quarters one through three, we’re collecting what we bill in Q4.
We do have strong momentum heading into the New Year. I would only add that we did have the benefit in Q4 that end of year tension, Andy, where Q1 historically has always been a bit softer than its previous quarter or the quarter preceding it, which was Q4. That said, we’re expecting a better collection experience in 2023, largely driven by our continued – the continued success we’re having with our collection strategy, coupled with an improving environment. And the success we’ve had in organizing the majority of that $60 million – more than half of that $60 million I referenced into promissory notes. So that will be a tailwind as well relative to – 2023 collections.
Andy Wittmann: All right, great thanks guys.
Ted Wahl: Thank you, Andy.
Operator: Your next question comes from the line of A.J. Rice with Credit Suisse.
A.J. Rice: Hi everybody. Maybe a couple of questions, if I could just remind us on the contract modification, what is the price – January 1 price increase roughly that you anticipate or that you’ve realized at this point?
Ted Wahl: Yes, real difficult to quantify that, A.J., in the sense that this wasn’t sort of an across the board date certain increase of a specified amount. It was, as we described previously, very much a, bottoms up customer-by-customer exercise and along with kind of the variety of the increases based upon the specific facility considerations. It was also timing, right? We talked about some of the effect of those negotiations running through the results in the back half of the year. But certainly more in earnest as we get near to Q1 so, too much of a moving target A.J., to give any sort of a, meaningful specific number as to the increases.
