Glenn Eisenberg: Yes. And Lisa, on the utilization; so as you think about the quarter, obviously from a base business organic standpoint we were up 13.5%, so obviously very strong growth when you look year-on-year, but including the benefit from Ascension. So think about kind of the same-store sales, if you will, growth, excluding the impact of Ascension we’re up around 7%, so higher than normal growth rates in part given the comp that we would have had a year ago. And of that around 5.5% of that is coming from our volume and the other 1.5%, call it from favorable price mix. So as you think about it relative to 2019 kind of pre-pandemic, are we tracking at a more normal level, we would say we are now. If you look at the compound annual growth rate compared to 2019, again that 7% year-on-year growth this year would have been more like around a 4% compound growth rate compared to 2019, with volume in between, call it, 1%, 1.5% growth rate compared to 2019.
So as we think about volume normally historically at 1% to 2%, we’re kind of sitting squarely in the middle of that. So it says we’re tracking more normal, but the year-over-year is benefiting from some softness last year.
Lisa Gill: That’s helpful. Thanks so much.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of A.J. Rice with Credit Suisse. Your line is open/
Adam Schechter: Good morning, A.J.
A.J. Rice: Hi everybody. Maybe just asking, I know a discussion point over the last year has been labor. I just wondered if there is updated thoughts on whether the pressure points in the last year are still the same. Is there any updated thoughts on general average wage increases? And I wanted to just make sure I understood on that $25 million of stranded cost; is that in the Biopharma Lab Services? Or is that how somewhere else? And what’s the time frame for winding that down?
Adam Schechter: Yes. So I’ll start with labor, A.J. I mean, obviously labor has been an issue that I think all of health care has been struggling with a bit since COVID. What I would say is if we look at our turnover rates, although they’re still higher than they were prior to COVID, they actually look better this year than they did last year, and we’re seeing some improvement. Wage inflation continues to be an issue, and we continue to use LaunchPad savings to offset that as best we can. As we look at the $25 million stranded costs that we’re going to be removing, it’s enterprise-wide. By the end of this year we’ll be on the run rate to remove that for next year. But importantly, we’re still committed to the $350 million of LaunchPad savings that we’ve talked about in the past despite the fact that we no longer have the clinical business, where some of that cost savings obviously would have come from.
So we are going to continue to look for ways to reduce costs across the enterprise to offset some of the other pressures that we’ve talked about.
Glenn Eisenberg: Yes. A.J., just adding to that and more specifically, the $25 million of annualized cost, stranded costs that will take out this year to your point, while it will be throughout the whole enterprise. Obviously, a lot of it initially will come from the Biopharma segment. So this is the, call it the support that we have at the segment level that’s supporting was all three of the businesses that included the Fortrea business now supporting the two. So we’ll look to take out a lot of those stranded costs. In addition, we’ll take out some stranded costs that’s in corporate unallocated that wouldn’t have been allocated to any of the businesses. Having said that, when you look at our corporate unallocated number we did around $66 million in the quarter, we have been seeing an increase in that relative to the R&D investments we’re making in oncology.
