And so, expenses, a real time revenue, take reimbursement rates, take time to catch up with inflationary pressures. And so we’re starting to see — starting to see stability there, but at the same time, reimbursement increases kind of catch up with inflation. So, lots of lots of ways to go. But the US healthcare economy this year is going to be $3.5 trillion. So there’s lots of lots of money in the system, lots of intensive efforts to move more care to the outpatient setting which is more profitable and at the same time, some stability in the labor market.
Joshua Dennerlein: Appreciate that. Thank you.
John Thomas: Thank you.
Operator: Your next question comes from Tayo Okusanya with Credit Suisse. Please go ahead.
Tayo Okusanya: Yeah, good morning, everyone. Question on internal growth. I think everything that’s happening on the top line is pretty impressive, even with some of the deliberate occupancy drag, but with OpEx, I think you’re getting the same store OpEx growth was 9.8%. Could you just talk a little bit about efforts to kind of mitigate some of the OpEx increases going forward, and specifically is part of that just because of again, your triple net leases, but not everything is passed through at this point? Jeff, I believe you mentioned, you had like an 84% reimbursement rate. Could you just talk a little bit about again how ultimately some of the OpEx growth gets mitigated going forward for better same store NOI growth performance?
Jeff Theiler: Yeah, thank you, Tayo. I’m going to ask Mark to respond to that.
Mark Theine: Yeah, good morning, Tayo. So you point out our operating expenses in the fourth quarter were up 9.8%. It’s definitely higher than historical norms. But one thing kind of below the surface that’s really pushing it up this quarter is some one time insurance costs are insurance in the quarter was up 1.2 million over the prior year. And again, those are some one time costs in the quarter. But you know, one of the things we really appreciate about our portfolio is just you know, as alluded to is that we’re 95% occupied and highly triple net lease. So, our operating expense recoveries were actually up 10.3% to offset that increase. What our asset management team is really focused on is controllable expenses, and you know, where we’ve got the ability to impact long term, the operating expenses of the portfolio.
And if you look specifically at controllable operating expenses in the quarter, those are up about 5%, 5.5%. So, that’s a pretty good run rate and great work by our asset management team in this inflationary environment to really focus on those controllable expenses, which exclude insurance and taxes.
Tayo Okusanya: That’s helpful. And the continued investments in real estate technology again, I think you guys put like 0.5 million into that again this year, this quarter. Could you just talk a little bit about again, your ultimate return on investment that you’re looking for how this is going to help you guy, you know, in lower operating expenses, just again, as you just kind of look at more investments on the technology side. What exactly you kind of expect to get out of that?
