Saum Sutaria: Yes. Thanks Whit. I mean, first of all the pipeline is very robust at this stage and healthy, inclusive of both single centers and platforms that have multiple centers within it, a good mix of acuity across different services, meaning orthopedics and other things. In addition so look, I mean the 575 to 600 is a range that we put out there as a target by that standpoint. One of the things that we’re going to be disciplined about is we’re going to do good deals, high-quality assets, attractive multiples, not overpaying and ultimately being able to deliver earnings growth in those facilities and organic growth in those facilities in a way that we got it. So we’re not going to chase a number, but our pipeline at this point makes me feel good about the fact that if things come together the right way, we could reach that target by the end of 2025.
Whit Mayo: Yes. Thanks.
Operator: Thank you. Our next question comes from the line of Ben Hendrix with RBC Capital Markets. Please proceed with your question.
Ben Hendrix: Hey. Thank you very much. Your ambulatory net revenue per surgical case outlook, 2% to 3%, seems consistent with what we think of longer-term steady-state growth, just wondering if there’s potential for upside there from continued acuity migration within the same-store base? Or is acuity something you’re pursuing through just more through a function of new development? Thank you.
Saum Sutaria: Yes. Hey a couple of thoughts, yes. I mean 2% to 3% is kind of our long-term estimate. We have, obviously, as I indicated somewhat purposefully a very high degree of visibility into our managed care pricing and obviously, the Medicare pricing for 2024. The acuity and mix potentially represents some upside there. If you think about 2023 where we saw a lot of recovery in GI and ENT cases, even a relative mix shift could impact the acuity in 2024. And that’s got pluses and minuses associated with it, right, if the mix shifts from that perspective. But strategically, our plan is to continue to increase our high acuity services. Look, we’re also mindful of the fact, and we don’t spend a lot of time talking about it anymore, but we are still doing some work to move slightly higher volume, very, very low acuity work out of our ASCs into other settings in order to make room for higher acuity, we’re doing it in a more measured way than we perhaps did in 2022, but we’re still doing it.
And so that also presents upside if we’re successful in refreshing those partnerships. But we think that will serve us well for the longer term.
Ben Hendrix: Thank you.
Operator: Thank you. Our next question comes from the line of Josh Raskin with Nephron Research LLC. Please proceed with your question.
Josh Raskin: Thanks. Good morning. I want to stick with USPI. Can you speak to the revenue per case growth in the ASC segment that we saw in 4Q? It seems like the same-store revenues were more case-driven earlier in the year. So I’m just curious if 4Q was higher acuity cases or mix related as you were just talking about? And then I’m just curious relatedly, are there any differences in the trends on the same-store is relative to those that have been acquired or newly consolidated versus those that you’ve had a little bit longer? I’m thinking about some of the SCD assets that may not have been as mature and thinking about as those move into the same-store revenue number, is that going to keep that sort of total same-store revenue number growth higher?
Saum Sutaria: Yes. Hey, Josh, thanks for the question. Let me start with your second question and then pass over to Sun for the first one. I don’t think we see a major difference across the board. I mean, there look – there’s a lot of centers, obviously, some are more mature than others, and it’s a portfolio, right. So some are off, of course, there’s a bell curve, and some are growing faster than others, of course, from that standpoint. But I wouldn’t necessarily say or break it down by particular segments. I think the most important segmentation in 2023 was that you could clearly see the GI only centers grew faster than others on average. But the growth was pretty strong in segments beyond GI, but it was definitely faster in the GI only centers. That’s probably the most obvious trend that I’ve noticed. Your first question…
Sun Park: Yes, thank you, Saum. Hey, Josh, this is Sun. Thanks for the question on the net revenue per case. In the ambulatory space in Q4 of 2023, I think you’re right, we did see elevated net revenue per case, it was about 5.4% higher than the previous Q4 in 2022. But if you take a step back and look to the rest of 2023, those rates were a little bit lower, right. So that for fiscal 2023 overall, our NRPC was about 3.4% higher than 2022. So I think it’s partly what Saum mentioned, mix of different procedures, gastro, ortho, some of the other ones, and I don’t know that I would read too much more into that. And then, as we said, our guidance for fiscal 2024 assumes a 2% to 3% range, which compares reasonably well to the 3.4% that I just mentioned for all of fiscal 2023.
Josh Raskin: All right. Thanks.
Operator: Thank you. Our next question comes from the line of Sarah James with Cantor Fitzgerald. Please proceed with your question.
