Sharon Vitti: So, the payer stuff is hard, Taji, because it’s so variable. It depends on when we sign the contract, what the anniversary is. So, it’s an ongoing throughout the year. I would say we’ve probably touched half of our payers, and it just kind of is how the year rolls out and how we put the campaign out. So, I can’t give you anything concrete around the percentage of payers that will possibly — we’ll be speaking to around — in the anniversary increase of rate. On the VBC, or value-based care, or [the crate of] (ph) arrangements, that is a very small percentage of our current business. We certainly are venturing into that space to get more experience and to also capitalize on the benefits of our quality care and our great outcomes.
I think our MIPS is only upside, but it’s probably one of the best examples of our performance in that kind of an arrangement. So, I don’t think there’s anything to share at this point around VBC, other than pilots that we’re engaged in, and using those as learning situations to be able to look at is there a broader offering for the payer market.
Taji Phillips: Great, thank you.
Sharon Vitti: Thank you.
Operator: [Operator Instructions] Our next question comes from the line of Mike Petusky with Barrington. Your line is open.
Mike Petusky: Hey, guys, thanks for the questions. So, Joe, is there any sort of guide or anything additional talk about in terms of your expectations for cash flow from ops and CapEx for the rest of the year?
Joe Jordan: So, we didn’t guide the cash flow from ops or CapEx, but I think you could expect second-half CapEx to be pretty similar to the first-half. And I would say overall cash flow, probably somewhere in the mid single-digit cash usage, which would include the investing activities I just talked about.
Mike Petusky: What about the expectation for cash interest in the second-half?
Joe Jordan: Cash, it’s obviously dependent on the interest rate environment, Mike, but I would suspect it would be similar to Q2, all things being equal, on interest rate. The transaction took effect in Q2, and the interest piece of it really took effect back to, I believe, April, even though it was signed in June. So, most of Q2 reflects the new debt agreement. Use that as a proxy for the second-half of the year.
Mike Petusky: Okay, all right. And then, Sharon, as far as, and I suspect this is ongoing, but you guys have talked about assessing facilities and sort of ranking them in buckets and trying to figure out what’s going to make sense. Did you guys sell any facilities in the quarter or did I miss that or can you just update where you are in that assessment? Thanks.
Sharon Vitti: So, Mike, you are 100% right, this is ongoing. And interestingly, when we came out with the information, last year, as we look and on a quarterly basis our watch list and our close list, does move a little bit. But we did not sell any clinics in Q2. And I think the work that we’ve done really is to take a look at a few things. So, one, we, as Joe mentioned, have closed some clinics, and we have a few more that we’ll be closing over the course of the year. Number two, we’re really looking at how do we maximize our footprint. So, there are some opportunities where we have more demand than the capacity of the clinic, so it’s not held up by the workforce, there’s an opportunity to look at expansions, to look at renovations, [indiscernible].
So, that’s kind of the work we’re doing right now, how do we maximize our current footprint. And then I’d say the third is, we’re looking at where those strategic [pockets] (ph) are for growth. And it’s just a little bit of a different look than before. We’re really looking at where we absolutely have the demand and we have the resources to be able to grow in a market. And that will be something that we will be really working on in 2024.
