Unidentified Analyst : Good morning. This is John on for Derek. Wanted to revisit the PAMA issue there. I recognize that your guidance is assuming the PAMA impact as a base case, and you’ve talked about the 70 basis points of headwind between PAMA and COVID. But in the case of a delay, would you allocate that 80 million benefit that will turn into a benefit now between maybe letting it trickle down to margins versus investments?
Adam Schechter: Yeah, we’re going to push for the vast majority of it to come down to margin. I mean, there might be some incremental minor investments, but we’ve got almost $80 million into the plan, and I would expect the vast majority of that to come down.
Unidentified Analyst : Appreciate it. And then with the ATN profile, could you comment on? What sort of reimbursement you’ve been able to negotiate with the payers versus what you’re getting from the CMS? And I know, early earlier, you talked about the LBT tests as a volume, it’s less than 5% and a sale that’s less than 10%. But still curious if you plan on taking it for the FDA approval, or if there’s going to be any sort of disruption there. Thank you.
Adam Schechter: Yeah. So, at this point, we don’t think there’ll be any disruption to the ATN profile, we’ve launched it into the marketplace. You know, some managed care organizations are starting to reimburse others we’re in discussions with, but a lot of the reimbursement in that area is from providers and the health systems and so forth. So, we expect we’ll have good reimbursement from those areas as we go forward. It’s still relatively new tasks, we’re still have physicians, learning about the panel and so forth. So, it will take time, but over time, we expect it to be reimbursed well.
Unidentified Analyst : Thank you. That’s all.
Operator: And our next question comes from the line of Brian Tanquilut from Jefferies. Your question, please.
Brian Tanquilut: Good morning. I guess I’ll start, Adam, as I think about a comment that your competitor made yesterday, like contract renewals. Just curious what you’re seeing on your side in terms of contracting with payers, and your kind of like rate trends there as we think about upcoming rehabs and contracts?
Adam Schechter: Yeah, absolutely. Brian. So, you know, we’ve renegotiated the majority of our contracts were really, really finished. And, really close on one last one. But they ended up being very good negotiations, very good discussions, we think that ultimately, it will be flat, maybe slightly positive. So, I feel really good about that.
Brian Tanquilut: Got it. And then Glenn, you’ve talked about a three-year kind of like margin goals of 100 basis point to 150 basis point improvement, as we think about the moving parts between labor Launchpad. And I think we’re getting questions from people asking, you know, when do we see the flow through of all that, and improving it in volumes to the margin line? How should we be thinking about that?
Glenn Eisenberg: Well, again, a lot of the, the expectation is that we’re looking at good top line growth. So, we would expect to leverage off of that Launchpad savings that we’ve identified as well, and then being offset by labor and potentially continued inflationary environment. You know, for us, we talk a lot about labor, because it represents around 50% of our cost structure. So, we’re very focused on it. And as Adam said, we are seeing some improvement in the attrition levels, but it’s still higher than where it’s been in the past. And there’s a cost to that, let alone just the labor wage rates inflation, if you will, but all that’s been factored in. So, to the extent we can continue to drive the top line that we feel confident about, and realize the Launchpad savings, which we feel confident about, we equally expect to see that margin improvement.
Brian Tanquilut: Awesome. Thank you.
Operator: Thank you. This does conclude the question-and-answer session of today’s program, I’d like to hand the program back to Adam Schechter for any further remarks.
Adam Schechter : Thank you. Thank you all for joining us today. Hope you can tell that we remain very optimistic about the prospects for Labcorp as we continue to execute, and we execute well on our strategy, and that we believe our strategy is going to continue to drive substantial shareholder value. Hope everybody has a good rest of the day.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
