Martin Jackson: Yes. As you know, A.J., it’s really — it’s fully dependent on SEC and the comments that we get and the length of time that, that takes. So, as we get as we get further clarity, we’ll be able to give you a much better timeframe.
A.J. Rice: Okay. Obviously, a big win for the company in the quarter was on the labor front, as you said. I’m wondering just if you look — I know the year-to-year comps are still really good on the contract labor. If you look sequentially, are you still from quarter-to-quarter seeing that come down? Or are you sort of now at a at a normalized level and you just plays out at that level of contract utilization, et cetera? And then is there any comment on where your wage rates are trending for your permanent workforce and the critical illness division?
Martin Jackson: Yes, A.J., with regards to the RN rates, we think that we’re probably at the low end of the range right now. We do believe that there will probably be seasonality in those rates. But all-in-all, I think it’s within a couple of bucks of each other. I think on the — our full-time employee rates are in that 3% to 4% range on an annual basis.
A.J. Rice: Okay. And then maybe last question. On the — I think you previously said one of the issues or challenges in the proposed rule or the rule last year was the LTAC outlier threshold increase. You obviously had a very good quarter in the LTAC business this quarter. Are you seeing any impact on margins or volumes from that? And any early comment on the proposal for next year and how that might impact you?
Robert Ortenzio: Well, the — A.J., we normally don’t say much about the proposed rule, what is in a comment period. We’ll be submitting comments. I will say that the — the continued increase in the fixed loss threshold amount is copper on the providers that have the higher acuity, longer-stay patients. And we just continue to navigate that and continue to tweak our operations and in order to accommodate for the changes that are — and the directions that the policymakers are trying to push us. So, as you saw in Q1 with the LTACs that volume and expenses not salary wages and benefit and rate through acuity can really a day. So, we obviously feel good about the performance and continue to do that. And our business on that side of the business on the critical illness is better as the acute care hospitals have higher occupancies in their ICUs. So, that’s what really is the main thing that drives that business.
A.J. Rice: Okay, all right. Thanks so much.
Operator: Thank you. Our next question comes from Bill Sutherland with The Benchmark Company. Your line is open.
Bill Sutherland: Thanks. Good morning everybody. I wanted to see if there was any more color you could provide about the trend in the employer demand for Concentra, the lower levels of screens and physicals?
Martin Jackson: Yes, Bill, the demand there really has to do with employment. And as you know, I mean, during 2022 and 2023, there was much higher demand just because there was a lot more hiring going on. And as hiring goes back to normal, you’re going to see those drop and that’s something that we expected to see. I think the other point that I’ll make there is that those the types of activities that Concentra does for employment and hiring are really the lower end of the range, things like drug testing, which are in the $40 range of physical which are much lower than what the unit pricing is on workers’ comp.
Bill Sutherland: Yes, I guess the positive mix is good. So, I guess what you’re saying, Marty, is that sequentially, this is going to probably just flatten out. It’s just a year-over-year thing right now?
Martin Jackson: I think that’s — I think you could think about it that way. I mean I don’t think that it’s not really a concerning issue at this point.
Bill Sutherland: Okay. Back to LTAC for a second. The CMI increase was impressive. Is that part of the seasonality of 1Q or is that something that feels sustainable?
Martin Jackson: Yes, Q1 typically has a higher CMI than normal, but the increase that we saw was based on a year-over-year same-quarter basis. So, we felt pretty — we felt very good about that.
Bill Sutherland: Yes. And I guess that goes back to your comment, Bob, about ICU capacity and so forth.
Robert Ortenzio: Well, yes. And as you see — you see in the first quarter, you’re just going to have more of those respiratory cases. The winter months bring those, and you’re going to see more volume in the ICUs and consequently, you’re going to see more volume to the LTACs.
Bill Sutherland: Okay, that’s all I’ve got. Thanks everybody.
Operator: Thank you. I’m showing no further questions at this time. I would now like to turn it back to Robert Ortenzio for closing remarks.
Robert Ortenzio: Thank you everybody for joining us and for your questions.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
