Ben Haynor: Good morning, guys. Thanks for taking my questions. First off for me, on the resized pipeline, you gave a handful of figures in terms of what it would be resized versus the prior method of counting those patients and then also the additions. It looks like you’re kind of in the range of 65% to maybe 75% of whatever the prior numbers were the resize number, does that sound about right if we’re just thinking about kind of historically how those numbers would have tracked?
Paul Gudonis: Yes, we’ll have more information for you in the next quarter. Let me put those results in terms of the comparables for the other quarters of the year. But just to reiterate for the fourth quarter of this year, out of the full pipeline of 1,153, 794 was the number of — the restated number, if you will, for the ending of fourth quarter 2022. That compares to 528 at the end of last year. And then just — I gave you some changes, some breakdown of the additions out of the 387 pipeline additions, 294 represented additions from known payers in the fourth quarter of 2022 and then that compares to 150 in the fourth quarter of 2021. We had about 220 or so adds in the fourth quarter of 2021.
Ben Haynor: Okay. That’s helpful. And then presumably with the new criteria you’re going to have, lower drop offs of the pipeline, but do you expect any impact on the backlog drop offs as well with them being known payers?
Paul Gudonis: There might be some slight impact to the back clog. And particularly if there is a patient that might have insurance from one of those payers that has been maybe old and we’ve been trying to work on getting payment from without success. There could be some slight impact there. But on the whole note, the impact is more on the pipeline than on the backlog.
Ben Haynor: Okay. That makes sense. I guess, would be expected. And then just a point of clarification on the calculation for the cost per pipeline addition, is that under the old methodology, not the kind of known payer methodology, the new one?
Dave Henry: Yes, and I restated that for you too. So for the fourth quarter of 2022 under the — for the 294 we added that pipeline — cost per pipeline add was about $3,500. That same number for fourth quarter of 2021 was $6,600.
Ben Haynor: Okay. I apologize. I missed that. And then lastly for me on the kind of CMS strategy, it sounds like you’re kind of dual tracking on the DME MAC route, but then also hoping for those reclassification and the onetime payment. I guess, do you — and then one of the things that we’ve talked about previously as the studies that you’ll be bringing to CMS and to support those changes that you’re looking for. Are those studies published?
Paul Gudonis: So Ben, one study from the Cleveland VA, a randomized controlled trial for clinic and home use has already been published last year. Second one, which is from our patient registry of patient success in the home environment has been written and submitted for publication. And the third one is, which is a retrospective study of Medicare age beneficiaries which is very important to CMS is being finalized. This week, we expect to submit it for publication here this month.
Ben Haynor: Okay. Great. Well, thanks for the update guys and good luck with CMS.
Paul Gudonis: Great. Thank you very much.
Dave Henry: Thank you.
Operator: Our next question will come from Jeremy Pearlman with Maxim Group. You may now go ahead.
Jeremy Pearlman: Hi, good morning. Two questions. Number one, the Medicare Part B, how do you look at that opportunity versus your current opportunity of the payers, the high caliber patients that are — that you have seen coverage from insurers? What’s that? Is that a small incremental increase or was that actually really significant, will that really expand your addressable patient population?
Paul Gudonis: Well, with the high quality pipeline we have now that’s for near term revenue over the next year, because that’s usually the conversion cycle. Now for the Part B patients we have to turn away many individuals who do have Part B coverage who may qualify for MyoPro. So that would open up the MyoPro to that patient population, which is important because it’s about half of all Medicare beneficiaries are on Part B. As I mentioned earlier, the other half are on Medicare advantage plans. So it opens up more addressable market. And number two, many insurance plans whether they’re Medicare Advantage or commercial plans will often follow Medicare Part B lead if not Medicare Part B covers it more likely that commercial plans will follow suit. So that would make it easier for patients that — and these other insurance plans that we may not be getting reliable coverage on to have access. So it’s very significant in terms of inflection point for the company.
Jeremy Pearlman: Okay, understood. And then one more, what — do you have the average time it take to, let’s say, convert a patient once it’s in the pipeline after insurance to actual convert to revenue? And is there any opportunity to shore in that process?
Paul Gudonis: Sure. So we’ve stated in the past that a typical revenue cycle from when we get a lead to actually collecting the insurance payments and so that we can recognize revenue. It’s typically been from none to 12 months, that’s why this pipeline is really a leading indicator. There are things that we have done over the last couple of years to accelerate that. For example, we do telehealth screening initially with patients instead of having to organize an in person screening day. That’s saved several weeks. We now can do remote measurements of the patient’s arm rather than having to do it in person measurements and take a cast as in the past with our new version of MyoPro 2 plus. So we’ve taken those steps and we’ve seen some cycle times be as low as 30 days from when a patient is interested.
We evaluate them quickly through our telehealth screening and then they have to go to the doctor, get their prescription, we submit the notes, and we’ve seen some turnarounds, as I said, within 30 days. So that’s our goal is always accelerate that cycle time so patients can get access sooner.
Jeremy Pearlman:
Dave Henry: When you have Part B coverage too and you start submitting to Medicare Part B payers, the reimbursement process accelerates because you don’t need to file preauthorization request. So that will take a lot of time once that all happens. And so, if there’s a beat to the business in the future that includes servicing Part B patients, there should be a good reduction in the revenue cycle time from that as well.
Jeremy Pearlman: Okay, great. Thank you for taking my questions.
Operator: Our next question will come from Paul Lowry with Noble Equity. You may now go ahead.