Report no. 13/2013

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finances of 19 February 2009 on current and periodic information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. informs about receiving as of  31 January 2013 contracts concluded with the National Health Fund -the Mazowieckie Voivodeship Branch in Warsaw (the Fund Branch) regarding healthcare services in the scope of  hospital treatment, outpatient specialist care –outpatient clinic services, outpatient specialist care—cost-consuming outpatient diagnostic services, psychiatric care and addiction treatment as well as therapeutic rehabilitation for the period from 1 January to 31 December 2013.
 

Healthcare services referred to hereinabove are provided by St. Anne’s Hospital in Piaseczno managed by the Issuer’s subsidiary company EMC Piaseczno sp. z o.o.
 

The Issuer informed about the contracts with the Fund Branch concerning services rendered  in the previous year ( 2012) in its current reports nos. 4/2012 of 20.01.2012 and 22/2012 of  09.02.2012, 32/2012 of 07.03.2012, 51/2012 of 31.05.2012, 60/2012 of 12.06.2012, 69/2012 of  23.07.2012 and 87/2012 of 03.09.2012.

 

The contract for the provision of healthcare services such as hospital treatment, marked as 07R-1-01354-03-01-2011-2013/13 (07-06-03688-13-12/06) concluded on 10 January 2013, is the contract with the highest value.

 

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

 

The subject of the contract is the provision of healthcare services such as hospital treatment by the Issuer.

 

The maximum Fund Branch liability towards the Issuer in the period from 1 January 2013 to 31 December 2013 totals PLN 20,558,965.00.
 

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. 
 

In the case of issuing orders for delivery of medical products which are orthopaedic goods and auxiliary goods fully or partially financed by the Funds 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 financing together with statutory interest calculated from the day of making the refund. 
 

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 the period from 1 January 2011 to 31 December 2013 with a possibility of its termination by each party upon a 3-month termination notice. The Fund Branch liability specified in the contract refers to the period from 1 January to 31 December 2013.

The Total Fund Branch liability towards the Company for the period from 1 January to 31 December 2013 currently amounts to PLN 22,831,712.60.
 

A criterion for a contract to be considered significant:

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