Wayne DeVeydt: One thing I would highlight for our listeners on the call is that our growth algorithm of 3% to 5% of EBITDA growth through margin expansion really is reflective of the opportunities we have in the rev cycle, coupled with the opportunities we have in procurement, coupled with the synergies we get from the additional M&A. And so to Dave’s comment on the rev cycle, I personally think we’re in maybe the third inning of what we are capable of doing as an organization around rev cycle. And as we continue to grow our company, we continue to get new and unique talent into the organization that’s worked on a larger scale. And that talent then is bringing really new ideas to us around opportunities that we are losing to be able to collect more for the services we’re actually performing.
And in many cases, things that get denied that we really shouldn’t have denied based on the procedures that were done. So long and short of it is, I don’t expect this going away in the near term or in the midterm or in the long term. I think this is something that’s another five-year-plus journey for us. And every time we plug and play a new entity, those opportunities repeat.
Whit Mayo: Okay. So safe to say some element of the rate that you’re getting in the quarter is coming from increased yields from some of these initiatives. Just want to make sure that I’m clear on that.
Dave Doherty: There’s definitely an element to that. And again, as Wayne mentioned, it’s part of the way this company operates as we integrate new companies.
Whit Mayo: Okay. Got it. And the $19 million — or roughly $19 million in transaction integration M&A cost, can you maybe put some of those costs in the context? It did step up. I know you were more active in M&A. I just want to make sure that that’s — is this the right number to sort of think about on a go-forward basis? Just any help would be helpful.
Wayne DeVeydt: Yes. I think it will go down, Whit. I mean, I think that’s kind of the bolus of the pig and the python of all these deals that we just got closed on April 30. So you kind of have the all these things happening at once and all that’s flowing through the quarter as we’re getting to the end. And that includes a combination of legal advisers, valuation work we do, et cetera. So I think that will come down over time.
Operator: Our next question is from Kevin Fischbeck with Bank of America.
Kevin Fischbeck: Great. Can you talk a little bit about the volume number in the quarter? I know that there’s certainly some concern about the quarter and I think a little bit of confusion about what Q1 should look like based upon leap year and calendar. Talk a little bit about how you feel like the calendar impact of that number because it was below the two to three that you guys normally target for the year?
Eric Evans: Yes. Thanks, Kevin. Appreciate the question. So obviously, last year, we had 5.3% case growth, felt really good about that. If you look at the two years combined, still feel good about our growth in the quarter. There certainly were weather impacts. There were days of the week impact. We just — we have to manage through that, right? The reality of it is when we look at our case volume for the year, we still expect to finish the year at the upper end or above our guidance. And so first quarter, really, really pleased with the high acuity growth, which, again, one of the problems with case count is there’s a lot of movement between where we want — what procedures were really going after. So we were really pleased with where we landed within our expectations given the comparables and quite honestly, just to reemphasize, we expect to be at the high end or above our algorithm by the end of the year.
Wayne DeVeydt: Kevin, on your question of the leap year, it’s an important one because in the current year, as a reminder, we don’t benefit from it unless we get an extra Monday through Friday. And so if you actually look at the days we were open this year, it’s comparable to the days that were there last year despite the leap year. That being said, we will pick up a day in the third quarter and the fourth quarter of this year versus last year due to the leap year and due to when the number of Mondays through Fridays fall on the calendar. So no inherent benefit to us for the day in the quarter, but it will [indiscernible] for us as the year progresses.
Kevin Fischbeck: All right. Great. And then just a little color on the deals that you were doing, I guess, consolidated versus unconsolidated. I mean is the revenue boost related to the deal? I know — I was a little bit confused as you pointed out in your earlier response that you assume a certain amount of deals with a midyear convention. So is the guidance raise due to just the timing impact of those deals coming in a little bit earlier? Or how should we think about how much of that revenue guidance raise is kind of run ratable, if you will, versus just kind of accelerated timing?
Dave Doherty: Yes, Kevin, Dave here. And again, thanks for that follow-up question because it is a little bit — perhaps a little bit confusing. Our guidance, as we talked about at the beginning of the year, does assume $150 million to $200 million of M&A midyear convention. And I think we mentioned on our fourth quarter call that our pipeline at that point in time was all or predominantly consolidated. So you could assume a revenue in your calculations kind of associated with that. Fast forward to today, we have now approximately $200 million that we’re going to do inside the second quarter, a majority of which was done in April, the end of April. Most of those are going to be in consolidated assets. There was one ASC inside that portfolio that will be nonconsolidated. So it is definitely a component of our increased guidance for the year. The other component, of course, is increased confidence in our underlying revenue growth for the organization.
Operator: Our next question is from Andrew Mok with Barclays.
Andrew Mok: Just wanted to follow up on the professional fees and other OpEx. It looked like that was up double digits sequentially in year-over-year. Can you elaborate on what’s driving those costs higher and whether we should expect some moderation in any of those categories for the balance of the year?
Dave Doherty: Yes. Thanks, Andrew. I appreciate the question there. So first off, managing the margin in the company does require us to look at and evaluate all of the costs kind of sitting inside these categories. And as Eric mentioned a little bit earlier, our state-based reimbursement programs do have a degree of estimation associated with provider taxes as a component of that, and provider taxes can be a pretty material part. So as we true those up, those may be reflected in there. In the first quarter, what you’re seeing inside those other operating expenses, is that true up of provider taxes.
