Operator: The next question comes from Eric Coldwell with Baird. Please go ahead.
Eric Coldwell: Thanks very much. I have perhaps three just clarifications housekeeping stuff. First, Craig, in your early prepared — or discussion on the Q&A, you were talking about headwinds and tailwinds as you looked out through the year. At the end of that, you said something to the extent of we have factored in the best case. It would seem to me you would want to factor in the middle case in guidance.
Craig McKasson: Yes.
Eric Coldwell: I’m just — was that a wording issue?
Craig McKasson: I apologize, Eric. If I didn’t say it correctly, I meant to say, our best estimation, not best case. So yes, it — we certainly did not factor in a best case into our expectations. We factored in our best evaluation based on the macro environment conditions and what we’re hearing from our healthcare systems today.
Eric Coldwell: Yeah. I assumed that was the case, but I wanted to make sure it was clear. And then another clarification or just reiteration perhaps. I think you said, if you exclude the new acquisition TRPN ConfigureNet that adjacent markets growth within Performance Services would have only been a couple of points below the lower end of the original 30% to 40% growth range. Did I hear that correctly?
Craig McKasson: That is correct.
Eric Coldwell: Okay. So I know the theme of Remitra is important, but the magnitude of the impact therefore not huge in dollar terms. And then the last one the pre-tax restructuring charges coming in 3Q. Was part of your discussion of 3Q profitability the inclusion of those charges in non-GAAP numbers i.e. will — is this going to be taken out in GAAP, or is this going to — those charges going to — actually the $8 million going to impact EBITDA in the third quarter on a consensus basis?
Craig McKasson: Yeah. Thank you for asking. We are absorbing the $8 million restructuring charge in our adjusted EBITDA performance. We will not be adding that back. So that’s why we are indicating that that’s going to impact third quarter profitability. It’s not an add-back to adjusted EBITDA.
Eric Coldwell: Okay. That’s it for me. Thank you.
Operator: The next question comes from Jack Wallace with Guggenheim. Please go ahead.
Jack Wallace: Hey. Thanks for taking my question. Got one on Remitra. Just so I’m clear, it seems like some of the slower pickup in that business was related to part of the value prop, related to the financing your portion of the business. As I’m just stepping back and thinking, all right you’ve got a product or you got a service that will help reduce costs, reduce friction in the payments, reduce some of the labor burden. It seems like it’s a very great product market fit in today’s macro. So I guess my question is, are there other points of friction that may be causing a slower rollout of the product, whether it’s implementation time lines any kind of upfront payments, something that would cause the customer base to pause on a decision there, if they were not — were to not go through with the financing option? Thank you.
Mike Alkire: Yeah. So this is Mike. So virtually all of the concern or the lack of performance was that CFO that cash flow optimizer. And as Craig said, it’s primarily — well, it’s related to a couple of things. One interest obviously in the market, but also just the market in general. But secondly, what I’ll continue to say is the backside of this the invoicing part of this is something that’s absolutely going to be needed in the healthcare systems. It actually helps them centralize invoicing. And as I continue to say as healthcare moves from the acute to the non-acute, it’s going to be really important that they centralize all this invoicing across all these disparate areas where they’re providing care. And this solution will actually do that.
So it obviously will help reduce labor costs in terms of managing invoices, but just as importantly, provide them insights as to what’s being invoiced in those facilities. So like I said earlier, we’re incredibly still positive on this opportunity. And as I said, we had a number of our suppliers together a couple of weeks ago and there was a lot of excitement there. And I imagine when we get the providers together we’ll see the same level of excitement.
Jack Wallace: Got you. That’s helpful. And then on the GPO I guess two questions here. One, do you think you’re feeling the impact of some of the reimbursement issues that have plagued providers in the back half of the calendar year and maybe even to the first quarter just that payers delaying some payments? And if there’s — and related to that, do you feel like there’s potentially even lower levels of inventory supplies particularly in the inpatient your customers just as a as CFOs they are managing cash flow. So maybe the flip side of that being is there a — do you feel like there’s a potential for a snapback break or have a faster glide path out of the sequential hold that you have in the third quarter guidance? Thank you.
Mike Alkire: Yes. So as far as payers slow paying, no, that’s not, typically that’s not something that will have the level of impact in terms of our business. And that our — for the most part, especially as it relates to the GPO, it’s pretty much driven by utilization rates. As it relates to your other question, I think, as I said, from an inventory standpoint, they’ll continue to bleed this inventory out. At some point, obviously, in the next quarter or two, you’re going to start to see more of an uptick. But I think that the CFOs are really trying to find that optimized level of inventory to ensure that they have enough product, but obviously they don’t have a high level of expense carrying that product.
Jack Wallace: Got you. That’s helpful. Thank you so much.
Mike Alkire: Thank you, Jack.
Operator: And our last question will come from Kevin Caliendo with UBS. Please go ahead.
Kevin Caliendo: Thanks, and thanks for sneaking me in. I guess to follow-up on that if you think about the issues in the supply chain, have you delineated at all between the impact from lower utilization versus the impact from inventory reductions and/or manufacturing issues?
