And we’ve got tools. We’re the largest provider of sleep equipment. So we start with a great position, of great strength. We can afford to keep investing in technology to get our costs down. We’ve increased share every year over the past several years. The investments that we made in 2022, as painful as they were at the time, are yielding have yielded benefits to us. We also are highly focused on patient adherence and retention, and there’s a couple of different flavors to it. One is we want to keep these people as patients that we can keep resupplying to. But we also believe that we can, by increasing adherence, increased downstream results for these patients and reduce downstream cost. So all of the things we’re talking about are geared towards keeping our business intact and growing well.
but also using our size and our data capabilities to improve outcomes for our members.
Joanna Gajuk: Thank you. Appreciate the detail.
Operator: And we have our next question from Eric Coldwell with Baird.
Eric Coldwell: Okay. Thanks. Just a technical on diabetes. I think you said pumps were down $9 million and CGM revenue was flat. But I’m seeing a $13.4 million year-over-year revenue decline. So I’m curious where the additional $4.5 million came from?
Jason Clemens: Yes, sure. Just a little bit of supply. So these are like traditional, like BGMs, test strips, wipes, things like that. That’s continuing as expected to be just a smaller part of the business.
Eric Coldwell: Okay. And then on PAP, the comments on first half ’24 tough comparison on equipment. Are you indicating simply lower growth versus the tough comparison? Or actual revenue decline on the equipment side of PAP as the 13-month rentals start to phase out?
Jason Clemens: No, the former. We’re just expecting, the 17% growth that we achieved in this quarter, right? I mean I don’t expect we’re putting up 17% growth in Q1 into next year on already very high comps. That’s all we’re saying, Eric.
Eric Coldwell: Okay. And then on Humana, again, I think it was 1.1 million, 1.2 million lives that you inherited with the 33 states and D.C. You had some of those patients previously, and you’re not doing all of the HME-DME for those patients. But if you’ll bear with a difficult-to-ask question, I’m trying to get a sense on how many of those Humana lives that you have access to, how many of those people are actually using DME that you are going to be the exclusive on in those states? How many of those patients were you previously serving? And what is your penetration on the incremental opportunity? I don’t know what the number is, but let’s say just for a baseline. If it’s 100,000 lives that you picked up incrementally, what percent of that have you actually onboarded at this point, so you’re fully operational on?
Jason Clemens: Yes. Good question, Eric. A couple of things to offer. Firstly, utilization is in line with expectations so far. So that means in the 1.2 million patients or more we classified that as. And the number of them utilizing equipment, and then kind of the size and shape of that equipment by category is largely in line with what we modeled with the data that was shared as part of the award, and within our expectations. I would tell you that the number of patients is higher than anticipated. I mean, I know Humana reported, I think, last week, they’re showing huge growth over 2022. So we’ve got some of that coming on as well, so just more patients than anticipated overall which frankly is a very good thing. It didn’t help us from a timing perspective as it just creates more and more patients that we need to push through with the capacity we’ve got on transition.
But overall, that’s a very good thing as we expect to continue to grow with Humana. The last thing I’d say is in terms of the pace of that transition, I mean, we did expect to buy out equipment as well as the supporting records that came with that from several competitors. But frankly, some of those deals did not materialize. And so that means we need to work patient by patient on transition. So again, we’re very confident that we will get through the transition in the early part of 2024, but that’s a little more color on what’s created more patients to transition than we expected.
Operator: [Operator Instructions] And at this time, I’m currently showing no questions in the queue. I’ll go ahead and turn the call back over to today’s presenters for any closing remarks.
Richard Barasch: Hi, this is Richard. Thanks. First of all, thanks to everyone for their very good questions that helped us articulate what we think are the very positive things that are going on in AdaptHealth. We look forward to more interaction and thank you for your time this morning.
Operator: This does conclude today’s program. Thank you for your participation. You may now disconnect.
