Edmundo Gonzalez: Yes. Let me share some high-level thoughts on that specific metric, because it’s a very key metric, and then Yoram can also share his thoughts on that. So, look, right now, as I mentioned, the Maestro base is at approximately $50 per employee per month of net revenue, where the legacy marque base is in the low 30s, again, per employee, per month. Now, the nuance here is really important to understand, meaning this is not because Maestro charges more for admin fees. They actually charge less than the legacy Marpai base. What has happened is that we’re now the beneficiaries, Alan, of the tens of millions of dollars that were poured into product development by the previous owners, by AXA, and they created a whole portfolio of ancillary products, okay?
So, those products would take an employee life that may have, say, $22 in admin fees. That’s a traditional fee that any TPA would get, up to $50 per employee per month. Now, what are some of those ancillary products? Well, first of course is care management. So, we have a full-blown multi-million dollar business staffed by nurses and other clinicians that help employees on all of their healthcare journeys. So, if someone’s coming out of the hospital, a nurse is reaching out to them, making sure they have their follow-ups, their proper care to not be readmitted into the hospital, right? Readmissions are a big driver of cost and also of, in some cases, deterioration of member health. So, our job is to make sure employees, essentially members of our plans, have the right care at the right time.
And of course, we make money off of that because those nurses are charging the plan as a medical claim for this guidance and this management of the employees. That’s just one business. We also have a full-blown business in processing all of the claims that are not in network. So, the out-of-network claims is also a very lucrative business, and that is what’s driving really the journey from $22 to $50, right? And that’s also what’s driving the margin. Now, on the Marpai side, again, we’re starting at $33. So, our base is similar, kind of in the mid-20s for admin fee, where the difference is on ancillary products. Now, the issue is that in the Marpai side, the ancillary products were not ours, right, that we were partnering with someone to do out of network, with another vendor partner to do care management, et cetera.
So, now that we own all these, we don’t just take a little fee by providing these, but we can actually provide the service and capture all the revenue. That’s how you get to $50. That’s how you get to $50. I’ll share with you that in our internal estimates, we call it 50 by 50, right? So, if you would reach, again, just the TPA business, our core business, we think breaks even at 50,000 lives at $50. Now, obviously if you’re at $55, you can have a lower number, but 50 by 50 is the key metric here, and we’re on our way. Yoram, would you like to share anything on that?
Yoram Bibring: I think maybe one thing I want add, just one thing, because I think Edmundo said it very well, is that in terms of value-based care, we are not really expecting substantial additions to the PPM this year. It might be a little bit in the fourth quarter. It’s really more in €˜24 where we’ll see – we expect to see more material revenues from that. So, that’s the only thing I wanted to add. Basically, as Edmundo said, the more we sell the ancillary, the legacy ancillary products from Maestro, the higher this number is going to go towards $50. That’s the name of the game.
Allen Klee: Okay. Thank you. And then on the expense side, you mentioned in the press release that by the second quarter of €˜23, the Maestro acquisition will be accretive, which is pretty fast.
