Report no. 11/2014

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodic information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. reports that on 23 January 2014 the company received contracts concluded by a subsidiary Company “Lubmed” sp. z o.o. with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch) concerning provision of healthcare services in the scope of  primary health care, outpatient specialist care and dental treatment for the period 1 January to 31 December 2014.

Healthcare services referred to hereinabove are provided by the subsidiary company “Lubmed” Sp. z o.o. in Lubin owned by EMC Instytut Medyczny S.A.

 

The Issuer informed about the contracts concluded by “Lubmed” sp. z o.o. with the Fund Branch concerning services rendered in the previous year (2013) in its current report nos. 12/2013 zof 31.01.2013; 22/2013 of 21.02.2013 and  5/2014 of  10.01.2014.

 

The contract for the provision of guaranteed healthcare services in the scope of primary health care, marked as  0113/3302157/01/2014/01 concluded on 24 December 2013, is the contract with the highest value.

 

The Parties to the contract are the Issuer and the National Health Fund- the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch).

 

The subject of the contract is the provision of healthcare services by the Issuer

 such as  primary health care including healthcare services rendered by a primary care physician, nurse, midwife, school nurse (at the primary health care centre), medical transport.

 

Pursuant to the contract, the Fund Branch accounts for the services provided by” Lubmed” sp. z o.o on a monthly basis, by multiplying the number of patients declared  by a rate per patient specified in the contract. With reference to the number of patients registered with the Outpatient  Clinic in December 2013 and the rates adopted per patient in the agreement, EMC Instytut Medyczny S.A. estimates the amount of Fund Branch liability towards Lubmed Sp. z o.o. at PLN 5,958,197.00 in the period from 1 January 2014 to 31 December 2014. 

The Issuer undertakes, within the duration of the contract, to conclude a civil liability insurance contract against damages caused in relation to the provision of services.

 

In the case of non-performance or improper performance of the contract, caused by the Company, the Director of the Fund Branch may impose a contractual penalty. 
 

In the case of writing out prescriptions to unauthorised persons or in unjustified cases, the Fund Branch may impose on the Issuer a contractual penalty amounting to the equivalent of the unjustified refund of the costs of medication made on the basis of prescriptions together with statutory interest calculated from the day of making the refund. The same provision shall apply in relation to medical products which are orthopaedic goods and auxiliary goods fully or partially financed by the Fund.
 

Contractual penalties specified above shall be imposed pursuant to provisions stipulated in General Terms and Conditions of the contracts.
 

The Fund Branch is entitled  to claim damages exceeding the value of contractual penalties.

 

The contract has been concluded for three-year-period from 1 January 2013 to 31 December 2015  with a possibility of its termination by each party upon a 3-month termination notice. 

The amounts and rates specified hereinabove shall apply from 1 January to 31 December 2014.

 

As a result of concluding the said contracts, the total Fund Branch liability towards the subsidiary company “Lubmed” Sp. z o.o. owned by the Issuer, currently amounts to PLN 8,441,141.18 for  the period  1 January to 31 December 2014.

 

A criterion for a contract to be considered significant:

The value of contracts exceeds 10% of the Issuer’s equity capital.