Shawn Morris: Sandy, as you would expect, we are having both conversations, as you — I think you called it the lighter version, Privia Care Partners. So I mean as Parth’s last comment there, just the way health care is organized we are having those conversations beginning to — who would be interested and we want to kind of — obviously, we think the solution — long-term solution for us is to build single tax ID medical groups, but we want to have these relationships and we have those conversations upfront and we’ll do that over a period of time.
Operator: Our next question comes from Jamie Perse of Goldman Sachs.
Jamie Perse : Just a question on the MA profitability. I appreciate you sharing your savings from that in 2022. I think in the past, you’ve made some comments around MA being potentially more profitable than MSSP. But just curious how we should think about timing and how long it takes you to get to similar contribution to MSSP if not above?
Parth Mehrotra : Thanks, Jamie, appreciate the question. So that’s a good comparison, we, in our most successful large ACO in Mid-Atlantic or close to double-digits in shared savings and MSSP as we reported close to 10%. And that’s an open access product, PPO type. Obviously, in MA, in capitation, when you’re handholding the patient a little bit more, you should expect at least that we can get to that level over time. It won’t happen overnight. It varies by geography, varies by our payer relationship and how our physicians perform. But over time, at least that or exceeding that should be the target for logical purposes. Our hope is when we — as you can see, the contribution today is fairly de minimis. So that’s a pretty big source of operating leverage in our business model as we move these lives into capitation. And again, hopefully, we’ll see good progression over the years.
Operator: Our next question comes from Richard Close of Canaccord.
Richard Close : I’m curious if you could comment on the reception of Ohio and North Carolina so far? And then as you think about entering new markets, is there any comments you can provide us in terms of how we should think of startup expenses based on the different models, something like Ohio and North Carolina versus trying to get Privia Care Partners people and Connecticut and Delaware on the platform? Just curious there.
Parth Mehrotra : Thanks, Richard. So on the first part, initial reception is pretty good. We’re just getting started. And again, this is a five, 10-year journey to go build big medical groups, 500,000 — 600,000 providers over time. So initial reception has been great. We shared that photo bus ad in the triangle area, which is pretty cool, all our elements in every single state over time. So if we are entering a state with a medical group or a health system, what may not happen day 1 is positive practice collections or care margin contribution because we have no doctors and no lives and we are setting up the market, spending sales and marketing, implementation costs, leadership costs for that particular state. And that’s about the USD 2 million to USD 3 million number that we stated previously.
We do exactly the same in a state where we might enter with the Privia Care Partners model as an example, in Connecticut. However, that state comes with attributed lives and some contribution, both practice collections and care margin day 1 on the value-based book. But the level of spend is consistent. The only other factor I would say is the size of the state will have some impact on the level of spend. So obviously, Delaware would be much smaller than Connecticut, Montana is much smaller than California and so forth. But the strategy is pretty consistent and the level of spend that USD 2 million to USD 3 million per year is fairly consistent.