Question-and-Answer Session
Operator
Thank you, ladies and gentlemen. At this time, we will be conducting a question-and-answer session. (Operator Instructions) Our first question today comes from Anurag Rana with KeyBanc Capital Markets.
Adam Winn - KeyBanc Capital Markets
This is Adam Winn for Anurag. A couple of question for you guys. When you referred to the new work you’re pursuing, what areas in particular are you focusing on?
Rich Montoni
Good morning, Adam, this is Rich Montoni. We’re really focused across the board in all of our business units on new work. The items that come to mind in terms of foremost would certainly be in the federal arena. Over the last couple of years we’ve experienced pretty meaningful growth in our federal business. We think strategically it is a great match with the expertise we’ve built up over the years. We also think it plays handsomely into our capabilities and dispute resolution of the fact that we’re an independent provider of dispute resolution services as well as quality oversight services.
So certainly in a federal arena, we expect new work. State and local, I think we expect new work, certainly in the Health and Human Services area. Some of this is resulting from the ongoing trend towards outsourcing by government, so we can talk about what those drivers might be, but certainly, to quickly share with you some of the drivers behind it, that’s the return on government workforce, it’s the increasing complexity of the cases. The increasing number of the cases that I think really constitutes some meaningful pressure points to increase demand in those service lines. And then consulting; we expect to grow consulting service capabilities when they best did with our core capabilities. That is the [can of] consulting space.
Adam Winn - KeyBanc Capital Markets
Great. Two more. Can you elaborate on your timing expectations for the [stage ship] legislation and final allocation?
Rich Montoni
I would be glad to talk about that. I have got to tell you, there is really no clear cut quick answer. It really will depend upon first and foremost, state by state, the individual state situation, and how those state leaders decide to move forward with the opportunity presented to them by the – this new federal legislation. There is a continuum. Some states may choose not to modify their programs extensively. Others will choose to move forward. I’d also say keep in mind, I believe the intent of the new legislation, the CHIP legislation, it’s really a five year program and the goal is to grow the coverage to children from 7 million to 11 million over five years. I think there is an earnest intent by the states to get there. But I don’t think it’s a three month or six month exercise, I think it’s multi-year.
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