So that was part of the offering. The other part of the offering was more in line with what we already do, which is just, you know, embedded people on the prevention side, but it’s a nice fit for us. It’s a new offering. We should be able and expect to be able to sell it to our existing client base, in many cases.
Eric Williams : Chris, my one additional comment on this would be, I mean, this was a niche that our bariatric team recognized. This was a client profile that we weren’t servicing today. These are folks who are going to be a little bit more cost conscious, that not just want to manage his own, want to manage these types of projects on their own ergonomics projects, but need to from a financial perspective, we do see a cross selling opportunity. But [indiscernible] was looking at going down the path of creating their own software, spending the time and money to do it, in order to chase this market segment that they weren’t servicing today. So this ERGO Plus [ph] represented an opportunity for us to go in speak first with software that was already developed.
And they were really under resourced, ERGO Plus in terms of their ability to market and sell that software. So we feel we have an opportunity here to dump gas on a fire. It’s a terrific product. We think this is a great market opportunity for us and really excited about this acquisition.
Lawrence Solow: Right. Appreciate the enthusiasm. Thanks for all the color.
Operator: We’ll go next to Calvin Sternick with JPMorgan.
Christopher Reading: Hey, Calvin. Good morning.
Calvin Sternick: Good morning. Thanks for squeezing in here. Just one quick one for me on IIP. I know that, some of their customers have pulled back on spending just given some the macro concerns. How are those conversations evolving? Are employers still hesitant? Are you seeing any signs of a shift in demand next year? And I know you talked about expecting net growth for 2024. Is the expectation at this stage that growth rates improve your every year but still below the 20%? Just any color you could give on sort of what the IIP revenue growth rate looks like next year would be helpful. Thanks.
Christopher Reading: Yeah, thanks. I guess on a macro basis, I would say yes, I expect the growth rate to pick up next year. I actually expect ’24 from the macroeconomic standpoint will not be great for the country. I think we still have some headwinds, but we’re making good progress with sales that will carry us through next year, I think. In terms of the exact percentage of growth as Carey mentioned before, that was our budget that we’re still working through that. We haven’t guided to that yet. It would be premature for me to peg that number at this point in time. We certainly haven’t used that 20% number. That was the number that we had coming out of ’21, was the last most recent number, maybe finishing ’22, I guess, before we guided to ’23. So bottom line is we’re not there yet. We should be there sooner than later. And once we have that number, we will work that into our guidance and give you a little bit more transparency, then we’re able to right now.
Calvin Sternick: Great, and then maybe one more on workers comp, I know you just had a couple of quarters there where volumes have been increasing and payer mix improving. Just wondering how you’re thinking about that trend continuing into next year? Do you think the momentum in worker’s comp really is an opportunity for accelerate? Or you are thinking about it as basically, sort of steady progress year-over-year.
Christopher Reading: We are working on something, I can’t really talk about right now. I don’t — we’re working hard. Let me just say we’re working very hard on the comp side to do something that would be a difference maker for us. But we’ve got some more work to do. It’s certainly a focus, and we have the resources and the attention on it. And I expect to make continued progress.
Calvin Sternick: All right, great. Thanks.
Operator: [Operator Instructions] We’ll go next to Michael Petusky with Barrington Research.
Christopher Reading: Good morning.
Michael Petusky: Good morning. So Chris, on the meeting, you all attended private PT, we’ve sort of heard out there not in terms of PT specifically, but in terms of healthcare in general, a lot of the private owners have not gotten the memo. The valuations have come down in transactions and that expectations are sort of out of whack with reality of interest rates, etc. And I’m just curious, as Carey pointed out, you got a lot of opportunities from a balance sheet perspective, the revolver to do something. I guess, what was the vibe at the private meeting? I mean, do you think this — in the next 12 months, do you hope to be as active more active than the last 12 months? Thanks.
Christopher Reading: Let me just say we have more really strong discussions that are going on right now than we’ve ever had. And there’s a good mix, not just smaller practices, but some larger practices as well. I expect it to be a good year, a very good year. We had one deal that we still expect to get on. That was bigger in size for us. That got hung up around a divorce proceeding that got — slowed everything down. This would have been a fantastic year, if not for that. I expect next year to be even better based upon the activity that we have right now. In terms of valuations, look, I think it depends on a lot of things. There are a lot fewer buyers in the market right now. Because individual private equity companies are really at kind of a limit. And so it’s a good time for us and we expect to make hay while the sun shines, as they say.
Michael Petusky: And sort of pivoting, but staying on the idea of making hay. How far along would you estimate in terms of your efforts at getting better pricing in commercial and worker’s comp? I mean, if this was a nine inning baseball game, are we in the third inning, seventh inning. Where would you sort of say in terms of your efforts to sort of renegotiate rates with your various customers are you?
Christopher Reading: Carey?
Carey Hendrickson: Yeah, I it’s hard to fit into that kind of measurement. But I would we’re — I’d say we’re about the fourth inning or so. We still have some work to do, but we’ve done a lot of good work, fourth and fifth inning is some somewhere in that range, but we haven’t necessarily seen all the impacts of that come into our net rate yet. But that’s where we are from a negotiation standpoint. That makes sense.
Michael Petusky: I got an honor of the Texas Rangers, that I’d throw the baseball analogy.
Christopher Reading: There you go.
Michael Petusky: Okay, so I guess in — I didn’t hear if you guys mentioned October patient volumes. Any insight into that? And sorry if I missed it if you mentioned it.
Christopher Reading: I don’t think we mentioned — go ahead Carey.
Carey Hendrickson: Yet we didn’t mention. But it’s — I’d say it’s it came in, it’s coming in strong. I mean, we don’t have the final numbers yet for exactly where it was. But based on we get weekly reports on the progress through the month. And it’s come in at our expectations and continuing to be strong, just like it has been all year long.
