Question-and-Answer Session
Operator
Thank you. [Operator Instructions]. Our first question today comes from Greg Nersessian.
Greg Nersessian
Hi, good morning. And just thank you to Mark for all your help over the years. Just a quick question on this commercial customer that you identify for -- as generating some of the margin pressure in the quarter, could you provide a little bit more color on where the sources of that higher cost came from? And then, I guess, is this a contract that renews January 1, is this part of the reason you’re citing ongoing commercial pressure next year? It doesn’t sound like you’re cost trends are changing, just trying to understand where the sustained cost pressures coming from next year?
René Lerer
Sure. Obviously Greg, we don’t typically name the customers or the detail. The reality is this is a customer that had a large population in a single contract that contract grew materially at one point during the year with an addition of significantly incremental members. Our expectation with those incremental members would have similar characteristics as the existing cohort and as we’ve learned over time that population, for whatever reason had much higher utilization profile than that cohort. So, it’s a customer that over time just generally over utilization, we saw increased utilization, increased cost to care for that one increment, for what we believe to have been the one incremental piece for the incremental member that came on.
Greg Nersessian
Okay.
René Lerer
Other than that in our core business we didn’t see any material change in the utilization.
Greg Nersessian
Okay. So, the ongoing margin pressure next year, is that just a function of the pricing environment?
René Lerer
It’s a combination of pricing environment as we have seen every year over the past several years that has margin, as we look at different margins and our margins become, we make our margins available to transparent price, as well as the significant pressure on healthcare customers in the current environment we expect that pressure to translated down to a certain degree as well.
Greg Nersessian
Okay. And then, just a couple of more quick ones. The depreciation and amortization, or depreciation is a little bit higher this quarter, I think you mentioned the Maricopa assets. I mean now that you’re transitioning those assets, is there going to be an impact on D&A going forward or should we use the 3Q numbers sort of a run rate?
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