Tony Koblish: Yes. Maybe I’ll just start with the methodology for analyzing that number. There is not clean data on this. So, we took third-party purchase market research and just did an analysis — sort of an area under the curve analysis pre-pandemic, post-pandemic and came up with that estimate. As we saw ’22 unfold, it did not look at all like we were catching up. In fact, it seemed like we were behind for the whole year on pre-pandemic levels, and I’ll drill into a regional local example. We have a general surgeon that we collaborate with who’s sort of transitioning to management for a decent-sized New England-based regional health system. And he explained it to us this way, particularly to the hernia practice or service up there.
He said, look, we’re running about 85% of pre-pandemic, which means that the backlog just continues to grow and maybe roll forward. We’d have to be running 115% to pre-pandemic levels to catch up. And that’s just not going to happen given nursing shortages, challenges and frankly, reduction in OR block time and hernia is susceptible to that. So I think if you apply that lesson across the 100,000 and a more national view, you’re probably not looking at a bolus that’s going to come through this system. I think what you’re going to do is slowly crawl your way up from 85% back to par and then slowly get beyond par maybe over time as the labor and OR block time challenges sort of sort themselves out over the long term. So, I think what we have is a rolling situation where it’s just going to roll forward.
And so, the way we’re looking at it is, this is a permanent situation. We’ve proven that we can grow and execute in a much worse environment earlier in the pandemic. And so, our job is to figure out how to grow like this is going to roll forward for the next several years, and that’s the way we’re treating the situation.
Phillip Dantoin: So, that’s very helpful. And I guess just one quick follow-up to that. In your guidance, are you assuming that 85% rate or maybe pushing a little bit higher this year? And anything above 85% might be a little bit of upside?
Roberto Cuca: Yes. So, we’re assuming — our guidance assumption assumes that the availability of operating room space in 2023 is similar to what it was in 2022.
Operator: Next question will be coming from Kyle Rose of Canaccord. Your line is open.
Kyle Rose: I was just wondering if you could start from a high level. I mean, obviously, you’ve had some big GPO wins over the course of the last, call it, 18 months. Maybe just frame where we are in 2023 relative to where we were entering 2022? I mean you did a great job of framing up the sales force structure there, but just how many hospitals do you have access to now versus previously? And I guess of the ones you have access to, where does your account base stand? Just kind of help us understand where your team is from actually putting pen and paper and getting access?
Tony Koblish: Yes. So I’m going to say this. I think we have not yet seen the impact of both Premier and this new third GPO contract at all, right? It’s starting to happen as we speak. So if you look at the one piece of data that we can be solid and have an actual real-life experience it’s HealthTrust, right? So HealthTrust started when the pandemic started, and we were unable to implement there, I’d say, for half of the three-year term of the contract. Even with that, 36% of our revenue in Q3 came from HealthTrust. 40% of our revenue in Q4 came from HealthTrust, right? So it shows you that in more normalized circumstances with the five factors getting stronger and stronger that we can really make headway when we have clean operating environment and our internal factors are strong into these systems.
