Now I think long term, we have a number of strategies to deal with that cost pressure, including in-sourcing some of that activity to the degree that we can and competitively bidding contracts, et cetera. I think at the moment, we’re caught in a tough situation because it’s difficult to change those arrangements in the short term. But in the long term, I think a lot of those pressures are a result of some of the internal struggles that some of those larger staffing €“ physician staffing companies are having. And I think as those work their way out and the market adjusts, we will see some easing of that in future years. But we’ve assumed, as Marc said, a substantial increase in 2023. As far as capital deployment goes, we’ve got embedded in the budget about $600 million of share repurchase assumed.
And we’ve also got about $800 million of capital expense or capital expenditures assumed in the budget as we’ve disclosed in the press release.
Operator: Thank you. Our next question comes from the line of Steven Valiquette with Barclays. Steven?
Steven Valiquette:
Steve Filton: Steve, can I interrupt? You’re breaking up. So unless we can get a better connection, I can’t hear your question. I apologize.
Operator: Would you please restate your question? Steven.
Steven Valiquette: Not sure it’s better or not.
Steve Filton: Yes, that’s better. Thank you.
Operator: Please, go ahead.
Steven Valiquette: Sure. I apologize .
Steve Filton: Steve, I apologize. You’re breaking up again. Maybe you can try to call back with €“ on a different line.
Operator: Yes, Steven, you can reenter in the queue. We’ll go to our next questioner who is Justin Lake with Wolfe Research.
Justin Lake: Can you hear me okay?
Steve Filton: Yes, we can.
Justin Lake: Good, thanks. So Steve, I was hoping €“ it sounds like there’s a very different trajectory between the acute business, given the headwinds there in the behavioral business, which seems to be acting better. So within the full year guidance, can you give us a little color on the growth we should expect year-over-year broken down between the acute business, the behavioral business and then maybe even the kind of corporate segment would be helpful as well. And then, Marc, maybe you could give us a little more color on what you’re seeing on the shift from inpatient to outpatient and what’s driving that? How big an impact is it having? And how are you thinking about it into 2023? Thanks.
Steve Filton: Yes. So looking at the two segments discretely, I think as we’ve suggested a number of times in the past, we thought that as COVID volumes declined, the recovery in the behavioral business would be more accelerated than in the acute in large part because there was never any benefit to increased COVID volume in the behavioral business. We didn’t get paid anymore for patients. And quite frankly, it created more staffing challenges. It created more sort of patient matching challenges, that sort of thing. So what I think you saw in the fourth quarter, and I think a continuation, quite frankly, what we saw in the third quarter, was, as COVID volumes declined, I think Marc commented on this at the outset of the call, we’ve been able to more successfully fill our nursing and other clinical vacancies and as a consequence of being able to incrementally improve our volumes, particularly as measured by patient days.
And that continues into next year. With the challenges I indicated, I think, in the earlier call is the price we’ve had to pay to fill those vacancies is higher base wages and some incentive payments and that sort of thing, which I think suppresses margins certainly at the beginning of the year, although hopefully, they improve as the year progresses. But probably, at the end of the day, the 2023 forecast assumes slightly increased margins in the behavioral business. The acute business, a little bit different as we talked about, they have to replace the benefit of the COVID volumes that they had. They’ve got to deal with the headwinds that we were specific about as such. So at the end of the day, I think that acute care EBITDA and is relatively flat in 2023, which means margins are down slightly.
