Mark Ordan: In the fourth quarter, R1 back stopped, our vendor back stopped a portion of our receivables, and that was a one-time event, which directly supported our numbers because they realized that they had been very deficient coming into the fourth quarter.
Whit Mayo: Okay. Sorry, one last follow-up and I’ll get off. Sorry. With any of the AR that you’ve already previously written off, are you making any progress to collect any of that or are all of the initiatives focused on the bills going out the door today?
Marc Richards: A couple of things on that. Certainly there’s a lot of initiatives on the bills going out today. As I mentioned earlier, with respect to the revenue that we recognized in 2022, we believe any difference in bad debt expenses is appropriately recognized and therefore reflected in our P&L.
Whit Mayo: Okay. Thanks, guys.
Operator: And next we can go to Kevin Fischbeck with Bank of America. Please go ahead.
Kevin Fischbeck: Great. Thanks. Yes, I guess it’s still not 100% clear to me how this R1’s payment is working. Is it flowing through your revenue number or is it €“ where does it show up, I guess, in the P&L?
Marc Richards: It’s in revenue.
Kevin Fischbeck: Okay. So your pricing includes the R1 impact. So I’m just trying to think about like what a €“ what do you think ex-CARES, ex-R1, but with normal performance on collections? What do you think pricing would’ve looked like in the quarter?
Marc Richards: Down about 200 basis points.
Kevin Fischbeck: Down about 200 basis points,
Marc Richards: Ex those factors.
Kevin Fischbeck: Ex those factors, even though commercial was up in the quarter. So like, what else, I guess, on a mixed basis? So what else was causing a down 200 basis points?
Charles Lynch: Yes. Kevin, it’s Charlie. For the fourth quarter that’s predominantly the comparison of CARES dollars as they flowed through which was pretty significant in the fourth quarter of 2021. Digging through all of those variable pieces, whether it is the impact of the rev cycle process, the CARES dollars and the like, we’re still looking at an underlying price trend in the range of call it 1% to €“ between 1% and 2%. And that’s a function of normal pricing trends across managed care and governmental payers as well as, as I think you know, we account for our admin fee revenue €“ our contract and admin fee revenue within pricing. And that usually has some increase to it in the fourth quarter, it was fairly modest.
Kevin Fischbeck: Okay. So you think underlying pricing is 1% to 2%, is kind of a go forward way of thinking about it once this is all stabilized?
Jim Swift: Yes, we don’t see any reason for it to be different from that.
Kevin Fischbeck: And then just to understand, I could €“ just to go back to the other question that was asked before this, because when we think about companies that are go through these types of disruptions, I guess there’s two potential implications going forward. One is that you get back to the right run rate, and then the second one is that you collect on things that you didn’t collect. So there’s actually a period of outperformance, I guess, as you start collecting on old receivables from. Is that the right way to think about it? Or is the fact that R1s backstop things kind of taken away some of that catch up opportunity? I mean, is there €“ how should we be thinking about what this looks like when it’s, we get to the other side of it?
