We keep talking about this 18 month to 24 month period. And every time we see an improvement that gives us confidence. In terms of the payer mix it’s been quite sticky throughout. And we’ve obviously spoken about that. We continue to see, kind of, slight improvements now with the Medicare Advantage book of business. So that also helps us as well with MA being in the high-30s. And then the last comment on Marietta we’re still expecting that bill to be passed in the language in the MSP amended. We had hoped it would be at the end of last year in the Lame-Duck period, but it didn’t happen. But we’re still confident that that will happen in 2023. We’re — obviously all the plans were locked and loaded last year for this year. So no impact in 2023 and it’s still going through the CBO scoring and we expect it to be a net cost to the government when that all gets resolved.
But obviously we’d like it resolved and the overhang of the questions to go away.
Christoph Gretler: That’s cool. Thank you. Appreciate your comments.
Helen Giza: You bet. Thank you.
Christoph Gretler: Yes.
Operator: The next question is coming from Ed Ridley-Day from Redburn. Please go ahead.
Ed Ridley-Day: Great. Thanks. And I’d also add my congratulations, Helen. And thanks for what laid out today. Great to see some commentary around return on capital. Obviously, a clearly important metric and obviously something that the company has struggled with in recent years. Can you give us some idea of your — the level you would like to see? I know you’ve laid out but that would be helpful if you could give us some color about how you would like ROIC to develop? And also a second question would be, have you yet or what are your thoughts on the opportunity in PD in the US in particular following your peers exit from the market?
Dominik Heger: Sorry, I think, we had a little bit of a connection problem. Can you repeat the last question, sorry.
Ed Ridley-Day: Sure. Your peer Baxter announced an exit within PD. And presumably that might offer an opportunity. I don’t know if you have any thoughts on that at this stage.
Dominik Heger: Thank you.
Helen Giza: Thanks, Ed. Thank you for repeating that question. We’ve got lost you at the back end of that. Yes, look, return on invested capital there’s no question, it’s disappointed, being in the 3s. I haven’t put a target range out there, but clearly we need to minimally clear our cost of capital here. So you can see the financial policy I’ve put out. It needs to improve and it needs to improve quickly and concertedly. We’ll think through whether we put some targets out there for April, having really got that far on the rolling target. But, obviously, we’re so low, it needs to improve and I’m very mindful of the increase in cost of capital and the impact on our WACC. So very much a focused effort internally. On your Baxter, yes.
Look, it would be interesting to see what that — how that all plays out. We know that some of those assets have been — how do I say, shopped for sale and there wasn’t take up on there, now they’re doing the spin-off. We’ll also see how customers react to it and what that means and if there is opportunity, obviously, our team are staying close to it and looking at it. But I think, for us, we’re clear where we are with our portfolio, but maybe it will help with pricing in the market overall. And we’re all suffering with the same inflationary and cost pressures on the product side here. So, yes, I think we’re just watching and waiting to see what happens as they complete the spin out and whether — yes, what kind of transaction happens as a result of that.
Ed Ridley-Day: Great. Thank you.
Operator: The next question is coming from Lisa Clive from Bernstein. Please, go ahead.
