Pharmacy is a different animal in that we will continue to have reimbursement pressure. I do want to point out, I think we said at your conference actually that the reimbursement is approximately — of 2023 is approximately 85% of the prior year and I’m going to pass it over to Rick Gates in a minute. The atmosphere out there in the negotiation process is much more focused now on health outcomes and what value we can bring to a payer in terms of reducing overall cost. And it’s less intensely focused on the absolute reimbursement number. So we see some change in the dynamics on longer-term pharmacy way too early to call any kind of victory, but I do want to emphasize that this year is a lower point than the prior year in terms of reimbursement pressure, and there are some positive signals going forward.
So Rick, I don’t know if you want to provide an input?
Rick Gates: Yes. As I’ll just give a couple of data points as well just to talk about second half and then I can go back to your first point. But Lisa, we have about 98% of our contracts are accounted for — or contracted for calendar year ’23. And we have good line of sight reimbursements that are, quite honestly, in line with our expectations. So we feel really good about what we’re seeing there. We’re always looking at improving procurement savings, increasing volume, doing things around pharmacy services, which are obviously offsets into our margin, which we’re going to see continue in the second half. And the other thing is pay-for-performance contracts. We’re in these adherence based programs really trying to solve for what our and payers are looking for, which has improved outcomes, which is what James alluded to there.
We’re seeing great improvements in our store performance and how we’re actually performing against these contracts, which should obviously come through in pay-for-performance benefits to us as well. So…
James Kehoe : Yes, Lisa, Rick brings up a good point. I would characterize the second quarter as being especially weak in terms of generic procurement savings and there’ll be more strength in the second half. And this we covered in this first half versus second half bridge back at your conference.
Rick Gates : Just, Lisa, on the Village question, the Village model works, and we’ve seen it work with some of the legacy businesses in multiple geographies. I think what you’ll see us do the lesson learn, is perhaps concentrate our growth and our investments in specific markets where we can be hyper-relevant in a concentrated geography. But we’re confident, and we don’t see any challenges to the actual model of what we’re delivering for patients and with providers in those markets. So the trends are positive. The one thing that I think you’ll see us do is really focus our investments so that we can get more of a return on that in specific markets where we can be particularly relevant.
Operator: Your next question comes from the line of Eric Percher from Nephron Research.
Eric Percher : A question on International. Just trying to sort through a couple of moving parts here. And I think beyond real estate, and NHS, I would love to hear your views on what the underlying business is running today? And a little bit more on where the NHS benefit or detriment fell in Q1, Q2 versus second half and expectations for second half normalized growth rates?
