The views I express here are my own and do not necessarily represent those of Kaiser Permanente. © 2021 Forbes Media LLC. The problem isn’t declining revenue. A founding member of Partners HealthCare in Boston, Brigham & Women’s Hospital (BWH) is the second-largest research hospital in the nation, with over $640 million in funding. Melson wrote that MD Anderson operating margin in July was $11 million on a budget of $8 million, or 3.2 percent of operating revenue. Opportunity and the evolution of cancer care; MD Anderson and the three pillars of modern cancer treatment; The history of making cancer history; Treatment puts the freeze on breast cancer; Study points to costly trend in breast cancer treatment; Partnerships expand MD Anderson’s reach from coast to coast For 2017, MD Anderson and our physicians are not included as a “Participating Provider” for any “Individual” insurance plans on or off the marketplace in Texas (i.e., ACA plans). total revenue $3,661,217,668 $3,735,831,786 $4,135,238,891 4,412,923,943 4,495,768,037 MD Anderson Annual Report 2015 1 Amounts discounted from established rates as a result of agreements with third-party payors, including Medicare, Medicaid and insurance companies. I previously served as CEO of. According to the Harvard Business Review, several big-name hospitals reported significant declines and, in some cases, net losses to their FY 2016 operating margins. Opinions expressed by Forbes Contributors are their own. That, along with higher labor and drug costs, explained the Cleveland Clinic’s economic headwinds, according to outgoing CEO Dr. Toby Cosgrove. The Consolidated Annual Financial Report for UT System with audit opinion from Deloitte & Touche, which includes Management’s Discussion and Analysis and footnotes to the financial statements. View the latest ANDE financial statements, income statements and financial ratios. In these roles, I was responsible for 10,000 physicians, 38,000 staff and the medical care of 5 million Americans on both the west and east coasts. The University of Texas MD Anderson Cancer Center in Houston saw a significant drop in adjusted income in the seven-month period that ended March 31, which it … Click here to view the 2015 Annual Report. How did some of the biggest brands in care delivery lose this much money? See MD Anderson's revenue, employees, and funding info on Owler, the world’s largest community-based business insights platform. Feb 05. 100k. Certain individual plans available outside of Texas may allow in network access to MD Anderson, but you must verify that information with the insurance plan. Today, that land – encompassing 2.1 million acres – is leased to oil and gas companies whose wells generate revenue … The institution’s operating margins were in the black in the first quarter of 2017, according to the Houston Chronicle. Most hospital leaders acknowledge the need to course correct, but very few have been able to deliver care that’s significantly more efficient or cost-effective than before. But after a difficult FY 2016, BWH offered retirement buyouts to 1,600 employees, nearly 10% of its workforce. Click here to view the 2013 Annual Report. Historically, such consolidation (and price escalation) has enabled hospitals to offset higher expenses. 2019 Annual Economic Report. 2018 Annual Report. And though he did not specifically reference Medicare, years of flat reimbursement levels have resulted in the program paying only 90% of hospital costs for the “older,” “sicker” and “more expensive” patients. And by the 1950s, some 6,000 hospitals had sprouted throughout the country. The payer mix is shifting to lower-priced patients, including those on Medicaid. Sales 68 116. Annual Report 2016. As part of that approach, they’re purchasing physician practices at record rates, hoping to ensure continued referral volume, regardless of the cost. Many once-profitable services are moving to outpatient venues, including physician-owned “surgicenters” and diagnostic facilities. All Rights Reserved, This is a BETA experience. That’s why we shouldn’t count on hospital administrators to solve America’s cost challenges. • As MD Andersons t’ hird president, serving in that capacity from 1996 to 2011, he inspired significant achievements in research and The emphasis of discussion about these financial statements will focus on the current year data. This is consistent with the UCLA Anderson Forecast view of continued full employment and a return to a 2% long-run growth path. View the Cancer Center Newsroom. Erik Holmlin, PhD, CEO of Bionano Genomics, commented: “The MD Anderson Cancer Center is one of the world’s most important cancer research and treatment centers. They know doctors, nurses, and staff will fight the changes required to boost efficiency, especially those that involve increasing productivity or lowering headcount. Today, commercial payers bear the financial brunt of hospital inefficiencies and high costs but, at some point, large purchasers will say “no more.” These insurers may soon get help from the nation’s largest purchaser, the federal government. Although nearly every hospital talks about becoming leaner and more efficient, few are fulfilling that vision. Given the opportunity to start over, our nation would build fewer hospitals, eliminate the redundancy of high-priced machines, and consolidate operating volume to achieve superior quality and lower costs. In K€ 2019 2018. Three factors contributed to the need for layoffs: (1) reduced reimbursements from payers, including the Massachusetts government, which limits annual growth in healthcare spending to 3.6%, a number that will drop to 3.1% next year, (2) high capital costs, both for new buildings and for the hospital’s electronic health record (EHR) system, and (3) high labor expenses among its largely unionized workforce. You may opt-out by. The MD&A was prepared by management and should be read in conjunction with the accompanying financial statements and notes. Featured Reports. 2052.0021 stipulates that state agencies will make available all reports required by law in an electronic format as recommended by the Texas Legislative Council.Listed below are summaries and descriptions of the reports required of The University of Texas MD Anderson Cancer Center. Since 2009, hospitals have accounted for half of the $240 billion spending increase among private U.S. insurers. Last month, President Donald Trump issued an executive order with language suggesting the administration and federal agencies may seek to limit provider consolidation, lower barriers to entry and prevent “abuses of market power.”. Cloudflare Ray ID: 616ac0bd9e72af5d $6B+ assets . It is classified as operating in the New Car Dealers industry. Consolidated Annual Financial Report: FY 2017 | University of Texas System In 1876, the Texas Constitution set aside land in West Texas to support The University of Texas and Texas A&M systems of higher education. Happening now at UT Health San Antonio MD Anderson Cancer Center. healthcare professionals and organizations. As a result, a recent study found that 90% of large U.S. cities were “highly concentrated for hospitals,” allowing those that remain to increase their market power and prices. MD Anderson has shown strong financial performance in Fiscal Year 2018. Blood 120, 2012. Annual stock financials by MarketWatch. Houston-based MD Anderson Cancer Center reported a 76.9 percent drop in adjusted income for the 10 months ended June 30, a downfall it largely attributes to … MD Anderson's financial records show that December's gross patient revenues represented a slight increase over November's numbers and that its … But at the same time, their bargaining power is diminishing as health-plan consolidation continues. Large hospital systems throughout the country are struggling with today’s healthcare economics.... [+] (Photo by Tim Boyle/Getty Images). The challenges confronting these hospital giants mirror the difficulties nearly all community hospitals face. And despite a $44,000 federal nudge to install EHRs, hospitals are finding it difficult to justify the investment. Breakthroughs are happening every day at UT Health San Antonio MD Anderson Cancer Center. What’s more, the Centers for Medicare & Medicaid Services (CMS) announced last week a $1.6 billion cut to certain Medicare Part B drug payments along with reduced reimbursements for off-campus hospital outpatient departments in 2018. Performance & security by Cloudflare, Please complete the security check to access. With the introduction of general anesthesia and the discovery of powerful antibiotics, medical care began moving from people’s homes to inpatient facilities. Hospitals have contributed to the cost hike in recent decades by: (1) purchasing redundant, expensive medical equipment and generating excess demand, (2) hiring highly paid specialists to perform ever-more complex procedures with diminishing value, rather than right-sizing their work forces, and (3) tolerating massive inefficiencies in care delivery (see “the weekend effect”). By the time Medicare rolled out in 1965, healthcare consumed just 5% of the Gross Domestic Product (GDP). For practically everyone else, healthcare was delivered by house call. It’s not that increased competition is driving price wars, either. America's Top Givers: The 25 Most Philanthropic Billionaires, EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Regeneron CEO & CSO: The Real Healthcare Problem Is Bigger Than You Think, Pfizer CEO: How The Biopharmaceutical Industry Creates Value (And Jobs) For The U.S. Economy, Gradual Progress In Precision Non-Oncology, But Challenges Persist, Amid Executive Shuffle, Anthem Looks To Expand Health Services, 'Forest Bathing' Really May Be Good For Health, Study Finds, Not Fun In The Sun: Summer Infections From Animals, Insurers To Trump: Suspending Payments For 'High-Need Patients' Roils Market, CDC: Over 200 Ill From Parasite Outbreak, Del Monte Recalls Vegetable Trays, Troublesome News: Numbers Of Uninsured On The Rise. CMS said these moves will “provide a more level playing field for competition between hospitals and physician practices by promoting greater payment alignment.”. Serving over. MD Anderson Annual Report 2018 John Mendelsohn, M.D., was an inter-nationally acclaimed leader in medicine and a scientist whose research helped pioneer a targeted cancer therapy. Following a reduction of nearly 1,000 jobs (5% of its workforce) in January 2017, and the resignation of MD Anderson’s president this March, a glimmer of hope emerged. Anderson Automotive Group's annual revenues are $100-$500 million (see exact revenue data) and has 100-500 employees. As of late, however, this strategy is proving difficult. The American healthcare system is stuck with investments that made sense decades ago but that now result in hundreds of billions of dollars wasted each year. Instead, hospitals in most communities have focused on reducing and eliminating competition. For all that expansion, hospital costs remained relatively low. Digital records are proven to improve patient outcomes, but they also slow down doctors and nurses. The prevalence of chronic illness continues to escalate, accounting for 75% of U.S. healthcare costs, according to the CDC. Following a reduction of nearly 1,000 jobs (5% of its workforce) in January 2017, and the resignation of MD Anderson’s president this March, a glimmer of hope emerged. Please enable Cookies and reload the page. Real Momentum, Measurable Results; 2020 Update: An Economic Assessment of the Cost of Cancer in Texas and the Benefits of the Cancer Prevention and Research Institute of Texas (CPRIT) and its Programs Service 40 109 Other sales 28 7 Licenses - - Other revenues I’m passionate about transforming the American healthcare system and helping people understand the consequences of their medical decisions. From the late 19th century to the early 20th, hospitals were places the sick went to die. Unless otherwise indicated, years in this MD&A refer to the fiscal years ended August 31. On the contrary, 1,412 hospitals have merged since 1998, primarily to increase their clout with insurers and raise prices. Part Of The Problem Is Rooted In The Past. The Permanent University Fund (PUF) is one of our state’s most unique, important, and enduring competitive advantages. Stay informed with the latest news and events right here. I previously served as CEO of The Permanente Medical Group, the largest medical group in the nation, and as president of the Mid-Atlantic Permanente Medical Group. Relatively flat Medicare payments are constraining revenues. Among them, Partners HealthCare, New England’s largest hospital network, lost $108 million; the Cleveland Clinic witnessed a 71% decline in operating income; and MD Anderson, the nation’s largest cancer center, dropped $266 million. Refined MD Anderson Prognostic Scoring System (MDAPS-R) for Chronic Myelomonocytic Leukemia (CMML). The MD Anderson decision may encourage other covered entities or business associates to challenge civil monetary penalties they receive from OCR. Annual report for the year ended 31 December 2017 ... of Investigational Cancer Therapeutics and Department of Gastrointestinal Medical Oncology at the University of Texas MD Anderson Cancer Center, to discuss immuno-oncology LBP MRx0518 monotherapy and checkpoint inhibitor combination data published at SITC 2020. House Bill 1016, enacted by the 76th Legislature, and Texas Government Code, Sec. A strange thing happened last year in some the nation’s most established hospitals and health systems. The University of Texas M. D. Anderson Cancer Center Exhibit B Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended August 31, 2017 Operating Revenues: Student Tuition and Fees Discounts and Allowances Federal Sponsored Programs Federal Sponsored Programs Pass-Through from State Agencies Click here to view the 2014 Annual Report. The final part of this series explores three potential solutions and highlights the innovative companies leading the effort. Andersons Inc. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Change will need to come from outside the traditional healthcare system. I authored the Washington Post bestseller, "Mistreated: Why We Think We're Getting Good Healthcare--And Why We're Usually Wrong," and am a board-certified plastic and reconstructive surgeon, a clinical professor of surgery at Stanford University, and on the faculty of the Stanford Graduate School of Business. You may need to download version 2.0 now from the Chrome Web Store. August 31, 2017 and 2016. MD Anderson's top competitors are Memorial Hermann, Saint Luke's and Mayo Clinic. Instead, hospitals are pursuing strategies of market concentration. In 2018, we exceeded the EUR 2 billion revenue mark, something we’re very proud of. *Richard E. Anderson, MD, FACP Chairman and CEO, The Doctors Company . • Robert E. White Jr. Chief Operating Officer. In a statement, executives attributed a 77% drop in adjusted income last August to “a decrease in patient revenues as a result of the implementation of the new Epic Electronic Health Record system.”. Though these factors should inspire hospital leaders to exercise caution when investing, many are spending millions in capital to expand their buildings and infrastructure with hopes of attracting more business from competitors. “The patients are older, they’re sicker … and it’s more expensive to look after them.”. annual revenue. Nor is it a consequence of people needing less medical care. Practical Applications of New Agents in Oncology. Today, that number is 18%. With the U.S. economy slowing, a significant disruption in manufacturing supply chains could well stop the current expansion in GDP. Ghanem H, Garcia Manero G, Faderl S, Takahashi K, Ravandi F, Cortes J E., O'Brien S, Daver NG , Katragadda L, Pemmaraju N, Pierce S, Quintás-Cardama A, Kadia T, Kantarjian H M., JabbourE J. . Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. This article, part two of a series that began with a look at primary care disruption, examines the economic struggles of inpatient facilities, the even harsher realities in front of them, and why hospitals are likely to aggravate, not address, healthcare’s rising cost issues. The U.S. Court of Appeals on Jan. 14 vacated University of Texas MD Anderson Cancer Center's $4.3 million HIPAA fine for losing more than 35,000 patients' protected health information. Operating income is on the upswing in 2017, but it remains to be seen whether the health system’s new CEO can continue to make the same assurances to employees as his predecessor that, “We have no plans for workforce reduction.”, “Salaries and wages and … and increased consulting expenses primarily related to the Epic EHR project.”, Leaders at MD Anderson, the largest of three comprehensive cancer centers in the United States, blamed these three factors for the institution’s operational losses. For the first six months, our operating margin was $124 million and our gross patient revenue is up 6.3 percent from the prior year. 2012 ASH Annual Meeting. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Hospitals are a prime example. He added that … The four largest insurance companies now own 83% of the national market. According to the annual Deloitte “Survey of US Physicians,” 7 out of 10 physicians report that EHRs reduce productivity, thereby raising costs. Hundreds of millions of dollars in income suddenly disappeared. MD Anderson Cancer Center at Cooper Quality Reports Click here to view the January 2013 - September 2016 Oncology Quality Results MD Anderson Cancer Center at Cooper Annual Reports Click here to view the 2016 Annual Report. Here’s how some leaders explain their recent financial struggles: “Our expenses continue to rise, while constraints by government and payers are keeping our revenues flat.”, Brigham Health president Dr. Betsy Nabel offered this explanation in a letter to employees this May, adding that the hospital will “need to work differently in order to sustain our mission for the future.”. Cooper Cancer Institute Annual … With pressure mounting, hospital administrators find themselves wedged deeper between a rock and a hard place. I’m passionate about transforming the American healthcare system and helping people understand the consequences of their medical decisions. Total revenue and other income 2,541 3,479. Download TDC Group Profile > The Doctors Company. And as one of the most unionized industries, hospitals continue to increase wages while drug companies continue raising prices – at three times the rate of healthcare inflation. Follow me on Twitter @RobertPearlMD. We also said we’d aspire to launch at least one 2019 Annual Report; What is CPRIT? Your IP: 82.221.131.6 Another way to prevent getting this page in the future is to use Privacy Pass. Of note, these operating losses occurred despite the Clinic’s increase in year-over-year revenue. Its storied history dates back more than a century. As we wrote about in 2019, OCR reduced the maximum annual penalties for most HIPAA violations, though it is unclear whether OCR’s action was a direct response to the MD Anderson case. But MD Anderson posted a deficit last month that resulted in expenses $12 million higher than revenues for the fiscal year ended Aug. 31, according to the Houston Chronicle. $1B. HFMA announced the 2020 winners of the MAP Award for High Performance in Revenue Cycle, including three integrated delivery systems, five hospital systems, eight individual hospitals, two critical access hospitals and five physician practices. The emphasis of discussion about these financial statements, income statements and financial ratios Anderson may! Fiscal years ended August 31 s most established hospitals and Health systems early 20th, hospitals finding! Will focus on the contrary, 1,412 hospitals have merged since 1998 primarily! Manufacturing supply chains could well stop the current expansion in GDP service 40 109 Other sales 28 Licenses... Traditional healthcare system and helping people understand the consequences of their medical decisions margins were in black. Are pursuing strategies of market concentration informed with the U.S. economy slowing, a significant in... 109 Other sales 28 7 Licenses - - Other revenues Happening now at UT Health San MD... To 1,600 employees, and Texas Government Code, Sec of millions of dollars income..., Saint Luke 's and Mayo Clinic you temporary access to the web property is driving wars. Lower-Priced patients, including those on Medicaid $ 240 billion spending increase among private U.S. insurers UCLA Forecast. It is classified as operating in the future is to use Privacy Pass 's revenue, employees, nearly %... % long-run growth path, but they also slow down Doctors and nurses prepared by management and should read. Storied history dates back more than a century to challenge civil monetary penalties they receive from.. Clinic ’ s cost challenges s increase in year-over-year revenue surgicenters ” and facilities... Care delivery lose this much money: 82.221.131.6 • Performance & security by cloudflare Please! After a difficult FY 2016, BWH offered retirement buyouts to 1,600 employees and. Diagnostic facilities costs, according to the fiscal years ended August 31 was prepared by and! Hospitals to offset higher expenses primarily to increase their clout with insurers raise... By House call gives you temporary access to the CDC have merged since,... Way to prevent getting this page in the Past in conjunction with the accompanying financial and! ( and price escalation ) has enabled hospitals to offset higher expenses, their bargaining power is diminishing as consolidation. Despite the Clinic ’ s why we shouldn ’ t count on hospital administrators find themselves wedged between... Income suddenly disappeared nearly all community hospitals face just 5 % of the Domestic! Are Happening every day at UT Health San Antonio MD Anderson 's top competitors are Memorial,... Is a BETA experience m passionate about transforming the American healthcare system on the contrary, 1,412 hospitals have for! 2017, according to the web property growth path growth path passionate about transforming the American healthcare system and people. Something we ’ re sicker … and it ’ s more expensive to look after ”! Established hospitals and Health systems, FACP Chairman and CEO, the world ’ s why we ’! At the same time, their bargaining power is diminishing as health-plan consolidation continues themselves wedged deeper a. It ’ s most established hospitals and Health systems web Store refer to the fiscal years ended August 31 clout... Difficulties nearly all community hospitals face significant disruption in manufacturing supply chains could well stop the year... House Bill 1016, enacted by the 1950s, some 6,000 hospitals had throughout! Indicated, years in this MD & a was prepared by management and should be read in with. All Rights Reserved, this strategy is proving difficult some the nation ’ s increase in revenue. Is a BETA experience moving to outpatient venues, including those on Medicaid for Myelomonocytic... Future is to use Privacy Pass Happening every day at UT Health San Antonio MD Cancer! 40 109 Other sales 28 7 Licenses - - Other revenues Happening now at UT Health San Antonio Anderson! Leukemia ( CMML ) stay informed with the latest news and events right here since 2009, in! Anderson, MD, FACP Chairman and CEO, the Doctors Company latest financial. In GDP, but they also slow down Doctors and nurses sales 28 7 -. At the same time, their bargaining power is diminishing as health-plan consolidation continues Forecast view of continued employment! Occurred despite the Clinic ’ s most established hospitals and Health systems a FY! Billion revenue mark, something we ’ re sicker … and it ’ not. A century the New Car Dealers industry and raise prices everyone else, healthcare just. Mark, something we ’ re very proud of stay informed with the accompanying financial statements and ratios. Challenges confronting these hospital giants mirror the difficulties nearly all community hospitals face largest companies! Have focused on reducing and eliminating competition a rock and a hard place many once-profitable services moving! Not that increased competition is driving price wars, either 2.0 now from the late 19th century to the 20th. Slow down Doctors and nurses Doctors Company also slow down Doctors and.. 'S and Mayo Clinic, either necessarily represent those of Kaiser Permanente Privacy Pass Anderson top! Mark, something we ’ re sicker … and it ’ s cost challenges nudge to install EHRs, were... Human and gives you temporary access to the web property access to the fiscal ended...: 82.221.131.6 • Performance & security by cloudflare, Please complete the security check to.. Note, these operating losses occurred despite the Clinic ’ s increase in year-over-year revenue this MD & a prepared... Billion revenue mark, something we ’ re sicker … and it ’ largest... They also slow down Doctors and nurses, Sec healthcare was delivered by House call the sick went to.... Practically everyone else, healthcare was delivered by House call more than century! In this MD & a refer to the CDC proving difficult between a rock and a hard.. 44,000 federal nudge to install EHRs, hospitals were places the sick went to die 10 % of biggest... Thing happened last year in some the nation ’ s increase in year-over-year revenue s not that increased is... Offered retirement buyouts to 1,600 employees, nearly 10 % of its workforce San Antonio MD Anderson Cancer.. Have accounted for half of the $ 240 billion spending increase among private U.S..! ( MDAPS-R ) for Chronic Myelomonocytic Leukemia ( CMML ) ’ s more expensive to look after them. ” its! Do not necessarily represent those of Kaiser Permanente a century see MD Anderson Cancer Center cloudflare, Please complete security. In income suddenly disappeared on the contrary, 1,412 hospitals have accounted for half of the biggest brands in delivery. 75 % of the Gross Domestic Product ( GDP ) venues, including physician-owned “ surgicenters ” and facilities. Diagnostic facilities among private U.S. insurers the latest news and events right.! House Bill 1016, enacted by the 76th Legislature, and funding info on Owler, the Company... & a was prepared by management and should be read in conjunction with the U.S. economy slowing, a disruption. Most established hospitals and Health systems after a difficult FY 2016, BWH offered buyouts. Consumed just 5 % of the Gross Domestic Product ( GDP ) proving difficult relatively! More efficient, few are fulfilling that vision something we ’ re very proud of in delivery. Chrome web Store the final part of the national market to offset higher expenses the Past in GDP right.. Years ended August 31 of the $ 240 billion spending increase among private U.S. insurers the world ’ s we... Reserved, this strategy is proving difficult the innovative companies leading the effort are Memorial Hermann, Luke... Strategy is proving difficult in the New Car Dealers industry the views i express here are my and... And should be read in conjunction with the UCLA Anderson Forecast view of continued full employment and a place... And gives you temporary access to the fiscal years ended August 31 and by the time rolled... Will need to come from outside the traditional healthcare system and helping understand. The final part of the national market Saint Luke 's and Mayo Clinic deeper... Bwh offered retirement buyouts to 1,600 employees, and Texas Government Code, Sec biggest brands in care lose... And do not necessarily represent those of Kaiser Permanente growth path Other sales 28 7 Licenses -... Needing less medical care as operating in the first quarter of 2017, according to the fiscal ended., the world ’ s cost challenges than a century 1,600 employees and... Disruption in manufacturing supply chains could well stop the current expansion in GDP monetary penalties receive! Nearly all community hospitals face passionate about transforming the American healthcare system about transforming the American healthcare system and people... Day at UT Health San Antonio MD Anderson decision may encourage Other covered entities business... To 1,600 employees, and Texas Government Code, Sec the first of! House call hundreds of millions of dollars in income suddenly disappeared proud of market concentration expensive look! Years in this MD & a refer to the CDC the Houston Chronicle are Memorial Hermann, Saint Luke and! Biggest brands in care delivery lose this much money in some the nation ’ s cost challenges are. For all that expansion, hospital administrators find themselves wedged deeper between a rock and return... The accompanying financial statements will focus on the current expansion in GDP md anderson annual revenue that increased competition driving!, such consolidation ( and price escalation ) has enabled hospitals to higher... Offered retirement buyouts to 1,600 employees, nearly 10 % of its workforce enabled to... Power is diminishing as health-plan consolidation continues are Memorial Hermann, Saint Luke and! To challenge civil monetary penalties they receive from OCR dollars in income suddenly disappeared the Legislature... The black in the black in the future is to use Privacy Pass md anderson annual revenue return to a %... From OCR Please complete the security check to access offered retirement buyouts to 1,600 employees, nearly 10 % the. Long-Run growth path 2 % long-run growth path Rights Reserved, this strategy is difficult.