Gary Taylor: And then on the reserve release, in that $25 to $30 per member per month, are we multiplying that by three? Mostly coming out of 4Q, we’re multiplying that by 12 when we think about what could get released. I know in the fourth quarter, I think you said there was a $23 million reserve addition. So, three or 12 kind of put us like $10 million to $30 million range, almost — maybe suggesting almost all of that could come back to you. I just wondered how we should think about the per member per month?
Atul Kavthekar: We’re thinking about that on sort of a 12-month basis on a full year basis. But again, before we — and that’s — and again, we’re not speculating on what amount of that is actually going to be recovered because there is certainly an appropriate amount of conservatism to have in the business. But that’s something we’re going to determine alongside and led by the analysis that the actuaries are going to do. So, there’s a process of corroboration. But our position is that we’ve had a chance to look at the hard numbers, and this is what we’re seeing over the course of the year.
Gary Taylor: That’s helpful. Last one for me on the increased sweep revenue expected. At this point, that’s still a 4Q 2024 expectation and could you quantify at all?
Atul Kavthekar: This is Atul again. I’m not sure we are in a position to quantify it. But I think the way we are thinking about it this year versus last year, there’s two aspects to it, and I’ll talk about the timing in a minute. One is that the business is simply bigger. And therefore, we believe that the sweeps, the percentage and the amount that we expect as far as the final sweeps go should grow as well versus last year. The second component of that is, as you recall last year, that was a relatively new thing for us, is to accrue sweeps that won’t actually be known until the future. And that is something that we’ve gotten not only better at, but also greater buy-in with our auditors, who have carefully reviewed it with their own actuaries.
So, I think there’s two aspects to why that ought to be bigger this year than next. And it is our expectation that we will at least to some degree, accrue that smoothly over the four quarters, but there will still be a component of this without getting too much into the weeds, Gary. There will still be a component of this that will be specifically recognized in the fourth quarter as we get much closer and much more refined data later in the year.
Gary Taylor: Great. Appreciate it. Thank you.
Atul Kavthekar: Thank you.
Operator: The next question comes from Ryan Daniels of William Blair. Please go ahead.
Jack Senft: Yes, hey guys. This is Jack Senft on for Ryan Daniels. Thanks for taking the questions. First off, in your 10-Q filing, and I believe you said it in the prepared remarks as well, you noted that you borrowed the remaining $15 million from the promissory note. But — and your cash burn this quarter was still about $20 million. So, I guess just with all that, how should we think our liquidity position going forward? And just your general comfort level around the cash balance for the next few quarters? Thanks,
Atul Kavthekar: Yes. Look, I think a couple of things. One is, as I mentioned, right after the quarter started, we received, for example, a fairly substantial premium payment. It — had that happen literally 24 hours earlier, you would have seen a $15 million better cash flow from operations. So, I think there’s some timing sensitivity. So, I wouldn’t read too much into any one quarter with regards to cash flow from operations. We feel like we are in a good position from a capital standpoint, as we’ve said in the past. But I think as we’ve also said in the past, we are positioning ourselves for more rapid growth and more rapid growth in this business simply requires more capital on. So, that’s something that we do think about. So, we would always consider that as an opportunity for purposeful growth.
Jack Senft: Okay, perfect. Understood. Thanks. And then also in your prepared remarks, you mentioned the partnership with Innovaccer. Can you just talk a little bit more about the reason for going with the partnership route versus in-house? And then just as a second part to this, can you just remind us what you were doing previously before the partnership for the capabilities they’re bringing in? I thought you were doing the predictive modeling, et cetera. So, is this just a more efficient route that you’re deciding to go? Thanks.
Sherif Abdou: Yes. So, this is Sherif. So, what we’ve done before, we had an algorithm for the predictive modeling, and we had a tech stack that is up to date that was doing the job. What we are mainly going to shift in Innovaccer or what attracts us for this strategic partnership with Innovaccer is the AI platform and having that tools to enhance our ability to do the modeling to enhance our ability by putting that notification. It’s an EHR-agnostic tool that can communicate with the providers at the point of care. So, that’s what we’re doing with it. It’s accelerating closure, improving the predictive modeling and the communication at the point of care. And it’s going to take 12 to 18 months to implement the full partnership to be in effect, and it will be cost neutral for us as well. So, enhancing the AI, all the benefits that I mentioned and custom neutral, that’s what attracted us to Innovaccer.
