There might be a gap period, but I think Texas will probably step up on that piece of it now that there’s additional funding. And then you have North Carolina, who there’s a big push to get that into their July 1st rate setting of this year. So they will get FMAP through June, as determined in that state already, and then hopefully, they get it into the rate July 1st. So I think we are relatively covered there the last two states step up.
Joshua Dennerlein: Thanks.
Operator: The next question is from Georgi Dinkov with Mizuho. Please go ahead.
Georgi Dinkov: Hi. Thank you for taking my question. Just going back to the PHE, I remember you just mentioned some of the waivers could go away. But I was wondering, do you expect any of the levers to stay in place and become permanent going forward?
Megan Krull: We don’t. I mean, we hope that at some point in time, the ability to skill in place that three-day stay waiver would become policy, because it is good policy. But at this point, no, we don’t expect anything to stay in place the PHE.
Georgi Dinkov: Great. Thank you. And just going back to LaVie, we noticed that the new rate is 2%. Can you provide more color what was that rate prior to the cut?
Taylor Pickett: 8.1%.
Bob Stephenson: Blended 8.1%.
Taylor Pickett: Right.
Georgi Dinkov: 8.1%. Okay. Thank you. And just last one for me, can you provide more color on acquisition opportunities and pricing in the U.S. and the U.K., and I guess, what is your plan for the year and where do you see opportunities?
Dan Booth: So we have seen activity actually pick up as of late. I wouldn’t call it robust at this point, but it has picked up. It’s picked up both in the states and in the U.K. So while we are not — we don’t predict what kind of deals we will do in the year, we have been active throughout these restructures, we anticipate continuing to be active.
Georgi Dinkov: Great. That is all for me.
Operator: The next question is from Tayo Okusanya with Credit Suisse. Please go ahead.
Tayo Okusanya: Hi. Yes. Good morning, all. Just following up on that acquisition question, the deals you guys did during the quarter pretty attractive cap rates there on a cash or GAAP basis. Just kind of curious, is that kind of what the market looks like when you are kind of doing deals that kind of 10%-plus GAAP yield, and if that’s the case, how does one think about what your acquisition activity could look like in 2023?
Dan Booth: So the deals that we did in the fourth quarter, a lot of those deals had been in process, if you will, for quite some time, so that the yields that were could have been quoted back in even as far back as the second quarter. Our overall cap rates have gone up and so now we are quoting deals at probably about a 1% higher cap rate throughout 2023. So that’s kind of what we are looking at in terms of changes in the market. Does that helpful, Tayo.
Tayo Okusanya: Got you. Yeah. And does that — just kind of given what those cap rates are in your applied cost of capital, it still seems like, again, you get to the cumulative transaction, so does that make you more interested in deal activity this year or no?
