Operator: Your next question comes from the line of Kevin Caliendo with UBS.
Kevin Caliendo : Danish, congrats on all your achievements at LifeStance, and best of luck going forward. It was a pleasure getting to know you. I just want to go back to the payer stuff again. I just want to understand that a little bit better. Does this — does the new sort of rates kick in on July 1? Is that why the cadence is — in the second half is not as great or not the normal seasonality? And two, maybe just to provide a little bit of comfort around this more, how often are these payer rates negotiated? And can you talk about any negotiations that would have started 1/1 on a same-store basis? Like typically, what do you normally see when you redo or renew a payer relationship?
Ken Burdick : Yes. It’s not quite as structured and organized as January 1 of every year, we renegotiate all of our contracts. This is really as we engage in a much more wholesome comprehensive fashion, we’re talking about rates. We’re talking about sort of the terms. We’re talking about delegated credentialing, et cetera. So these are pretty comprehensive discussions. Historically, it’s been sort of a nonevent that maybe there was a 1% add-on for future years, and we’ve changed that. So now we’re having these deeper, more strategic discussions about what the relationship is going to look like. And in some cases, they are multiyear contracts. And in others, they are annual. But they happen throughout the year. And so it’s — I would describe it as lumpy.
Even this particular contract renegotiation, there’s different lines of business that come into effect at different times. So I can’t even tell you that everything happens on July 1. There’s sort of a phase in. And it’s a little bit more nuanced than just sort of one single change in rate on one given date.
Dave Bourdon : And maybe just, Kevin, just to pile on to Ken’s comments. For your — from a modeling perspective, if you’re thinking about TRPV, what you’re saying is generally accurate, which is we would expect TRPV in the first half of the year to be higher than the back half of the year so that — so to answer that specific question.
Operator: Next question comes from the line of Brian Tanquilut with Jefferies.
Taji Phillips : You have Taji Phillips on for Brian. So first off, Danish, I want to say congratulations to you. It was wonderful working with you. And so my first question is going to be on clinician adds in the quarter. I know that you guys have mentioned that they had exceeded your expectations. So maybe if you can just provide an update on several different KPIs, retention, recruitment, turnover, right, within your clinician base. And then I have a follow-up from there.
Danish Qureshi : Yes. Taji, this is Danish. Thanks for the comments. And I can address the question around net clinician adds and some of the drivers. So yes, we’re very pleased with our net clinician adds in Q1. That exceeded our expectations. Again, that was 100% organic, which is something that we remain very proud of. Retention continues to remain stable. Our recruiting engine continues to be what we characterize as best-in-class. Our value proposition to our clinicians, both those that are here as well as new ones that we’re trying to attract, continues to remain strong. And so we feel good about our ability to continue to deliver strong net clinician adds throughout the year. Dave did mention in the prepared remarks, the dynamic that we see around Q2, where you typically see a lower number that reverses later in the year just due to seasonality and the fact that because we are delivering this on a 100% organic basis now, the seasonality is more visible than in previous years, where we had M&A as a component on top of organic.
So hopefully, that provides some additional color on what we’re seeing there.
Taji Phillips : That was great. And then another follow-up there, I know this is more recent news and obviously still preliminary, and there’s been some pushback on this. But thinking about the FTC’s potential noncompete ban, how are you thinking about the impact to your business, right, and just the general recruiting environment for clinicians in behavioral health space?
Danish Qureshi : Yes, I can take that as well. So for us, we do in states that, at least today, allow for noncompetes have that in our contracts. But not all states even today allow for it. And in those states, we do not. Though we have included that in contracts, we have never built the value proposition around noncompetes. For us, it’s about what are we providing to our clinicians to both not subtract but retain them and making sure that we’re constantly solidifying and bolstering that value proposition. So for us, this is not something where it’s a particular worry. If anything, we’d be hopeful that it creates more movement on the recruiting side and our ability to attract clinicians from other practice groups, where they currently may feel restricted to explore other opportunities.
Operator: Your next question comes from the line of Stephanie Davis with Barclays.
Stephanie Davis: Congrats on the quarter. And Danish, congrats on the accomplishments to date, best of luck in your next thing. I want to ask a little bit about the COO transition. Is there any sort of succession plan? Is this the role you’re expecting to keep? And then I guess, the follow-up related to that would be, is there a read-through, considering there’s been a bit of a turnaround in the back end for the past year that maybe a lot of this is already accomplished?
Ken Burdick : I’ll speak to the first part. You might have to elaborate on the second part. I wasn’t sure about the second half of the year comment. But one of the things that Danish has done so well over the past couple of years is recruit great talent to the organization. And so I do not have an immediate plan to replace Danish. As he mentioned in his prepared remarks, we’ve already elevated our leader of shared services and our leader of practice ops to the executive team. And my initial thinking is that they are ready to step up. And the rest of us on the ELT will step up. So at this juncture, I’m not in a position to communicate that we’re going to do an external search or we’re going to promote somebody from within to replace Danish in kind.
And I think it really is a tribute to the strength of the team that we’ve all built over the last couple of years. We’re in a dramatically different place. And one of the things that encourages me that I didn’t say in my prepared remarks, I think whether we’re talking about Change Healthcare, we’re talking about the departure of a founder, this hard work, which I’ve told you before, is not sexy and it doesn’t show up immediately. It’s created a resilience, a stability and a predictability that we simply didn’t have a couple of years ago. And so while I know we will have other surprises thrown at us from time to time, I continue to gain more and more conviction that we are more than prepared to navigate through it. Do you want to elaborate the second part of your question?
