Atul Kavthekar : Yes, Gary, thanks for the question. This is Atul speaking. Look, I think there’s a couple of components to it that really drive it. And it’s not on the back of one single factor or one single metric. I think as we went through the quarter and as we go through, we’re already in August, we look at a couple of key metrics around, for example, physician and patient engagement. Those are going exactly as we expected and, frankly, a little bit better. That gives us some confidence that where we are able to engage with those patients, we think we have a better opportunity to control medical cost. The second part of this is persistent life, and I think that’s a theme for the year, where the balance of the persistent lives is a substantial one.
And I think we’re seeing the benefits of that. We do have — we’re optimistic around growing our membership as we go through the quarter. The business developments and the demand that we see is every bit what we thought and maybe even a little bit better. And then you do have the efficiency factor. I think that this is a sustainable cost reduction. As I mentioned just a minute ago, I think there’s an opportunity to get even better at it. But it’s a combination of all those things. It’s not just any one.
Gary Taylor : Second one for me. I know one of the key issues in the anticipated improved margin and performance was a sweep revenue for ’23 versus not booking any in ’22? I saw in the Q, $14.5 million in the first half. So was that all in the 2Q? And should we think about the EBITDA impact as being roughly half is being shared with your affiliated docs?
Atul Kavthekar : Well, I’ll tell you about the first part. Yes. That’s in the disclosure. That was all in the second quarter. But look, we don’t really talk other than sort of the requirement of disclosing. We don’t really talk about it because we sort of really think about sleeps as part of the normal course of the business. We’re going to be seeing those across the year in the various quarters. But again, I think we feel good about the performance of the quarter and also our ability to kind of predict the amounts that we wind up seeing. So.
Gary Taylor : But you’re going to continue to book those on a cash basis, right?
Atul Kavthekar : We will.
Gary Taylor : Okay. Last one for me. I just saw the note about the cybersecurity incident? Is there a quick just explanation and kind of what happened and contained or any go-forward impact or anything?
Atul Kavthekar : Yes. I think the quick answer is no go-forward impact. We did have an event in the quarter. It was relatively small, immaterial as we see it. But it did happen, and we reflect that as part of expenses, but we don’t necessarily consider that as an ongoing thing. We have quickly closed all of the gaps that we saw in security and elevated everybody’s awareness around it. So we think we’ve got it under control. But yes, that is something that we excluded.
Operator: And the next question comes from Brooks O’Neil with Lake Street Capital Markets.
Brooks O’Neil : I have a couple of questions. I guess I’d start off with appreciate Atul’s comments about demand and activity in the first half. Can you just talk a little bit about what you anticipate for the second half in terms of patient demand and the provider responds to what could be either onetime or seasonal increase in demand?
Amir Bacchus : Brooks, this is Amir. Our demand continues to be high, not only from our payer partners, but also from our clinicians. And our providers will need to grow with us. So we are very bullish in regards to our growth as we move forward. So for us, it’s continued to work with our clinicians as we bring more opportunities with payers that want to continue to grow. So I think as we look from the third and the fourth quarter, that will do quite well as you roll through the latter part of the year.
Brooks O’Neil : Great. Let me ask you a second question. Obviously, the financial performance shows significant improvement year-over-year, which is terrific. Do you have anything you can point to that indicates whether you believe quality remains as good as it’s been or perhaps is even getting better in terms of the way you’re taking care of your patients and members?
Amir Bacchus : Yes. Brooks, Amir again. So as we’ve said before, a lot of what we see is as far as improvement of quality of care comes in the maturation as well, right? So as physicians start to learn more and more of the tools that P3 can bring to those practices working with the care managers, working with the overall team, quality team, et cetera. We start to see those results. So the quality of care does improve as we work with our clinicians. So I think that’s part of the reason why we’re seeing such success in the model overall, as Atul mentioned earlier. In addition to that, let me just straightforward quality measures. Those things also rise as physicians indeed get more engaged with closing gaps in care, working with teams, et cetera to drive those very things. So we expect quality overall, whether from clinical care or quality measures to continue to improve.
Brooks O’Neil : Great. And then last one I had, I was quite impressed with the funding improvement that you’ve achieved so far in 2023. And I’m curious if you have any indications of whether that’s sustainable into 2024.
