Mark Ordan: And we also have plenty of cash flow in order to do transactions such as acquisitions. I will say, we’ve talked about in previous quarters that were being prudent with regard to No Surprises Act and how we look at targeted acquisitions and that kind of principle will continue through. We do think there’s opportunity, but we’ll be wise and conservative in that regard.
Pito Chickering: Great. Thanks so much.
Operator: And next we can go to Whit Mayo with SVB Securities. Please go ahead.
Whit Mayo: Thanks guys. You guys have made some material progress reducing G&A in €˜22 or 2022. I feel like you communicated previously that the target for 2022 was $250 million for G&A, and it came in around $2.30. I know there’s some natural inflation inside that number offset by whatever you took out. So I’m trying to kind of circle a number like what the permanent G&A savings that you found in 2022 and also is there another savings number that you’re targeting this year? Thanks.
Marc Richards: Hey, Whit, it’s Marc Richards. Yes, you are right. We made significant progress in reducing overhead throughout all of 2022. We think and as we indicated in our guidance for 2023, we think that a lot of that progress has been made and that €“ as a result, we’re probably looking at a similar G&A load in 2023 to that in 2022, in the sub-12 €“ 11.5% to 12% range of total revenue.
Whit Mayo: Okay. Okay. So there €“ no additional initiatives to further reduce that G&A this year? I feel like there was a number that I had in my head, maybe like a $13 million number that you had previously communicated.
Marc Richards: Well, we had savings over the course of 2022, which are permanent savings of over $25 million. An offset to that is obviously we pay fees to our RCM vendor and other things that hit the overhead line item. But the savings that we achieved over the course of the last €“ over the last year are permanent savings. And we €“ and they’re concentrated at the executive level and on the people side.
Whit Mayo: Okay, Got it. So $25 million is kind of the number that you took out of the organization that should be recurring going forward. Okay. That’s helpful. I’m a little confused on the malpractice comments. I’ve been looking at your 10-K, the end period malpractice costs were actually lower year-over-year. It was like $53 million versus $56 million last year, and there was another $4 million favorable prior year development. So I don’t know, Marc, can you maybe flush that out just a little bit more, maybe there was just something elevated in the fourth quarter, but not necessarily in the full year.
Marc Richards: Yes, that’s correct. So it was one event and we don’t see that going forward. There’s no pattern and we haven’t seen that in the past and we don’t anticipate that. But you never know in terms of malpractice, so that was just one event in the fourth quarter.
Whit Mayo: Okay. And one last one here, sorry, I’m still a little confused on this. It’s just the AR write down in the fourth quarter, I presume there was one and then R1 absorbed that for you. They made you whole. And what are you assuming in terms of perhaps a headwind in 2023?
Marc Richards: Well, in terms of the headwind, we’ve said that we expect the headwind in 2023 to be approximately $15-plus million and adjusted EBITDA related to continued rate erosion. Looking at the fourth quarter of 2022, our net patient service revenue of course reflects all the ins and outs related to write downs and the associated billings in the quarter. So that’s all contemplated both in the rate discussion and in what we saw in total revenue for the quarter. So I’m not sure, there’s no real direct write-off related to that. It’s just our revenue recognition relative to our aging policies.
