Report no. 14/2012

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finance of 19 February 2009 on current and periodical information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A. informs about receiving as of 24 January 2012  the 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, therapeutic rehabilitation, outpatient specialist care and dental treatment for the period from 1 January to 31 December 2012.

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

The Issuer informed about the contracts concluded Lubmed sp. z o.o. with the Fund Branch concerning services rendered in 2011 in its current report no. 22/2011 of 01.02.2011, 42/2011 of 16.03.2011, 81/2011 of 08.07.2011,  111/2011 of  24.11.2011.

A contract received by the Issuer is the contract, marked as 01/5/3302157/01/2012/01  concluded on 17 January 2012 for the provision of healthcare services such as primary health care.

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)

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 of patients registered with the Outpatient  Clinic in December 2011 and the rates adopted for one patient in the agreement, EMC Medical Institute S.A estimates the amount of Fund Branch liability towards Lubmed Sp. z o.o at PLN 5,698,548.00 in the period from 1 January 2012 to 31 December 2012. The Issuer undertook, 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 the contractual penalties.

The contract has been concluded for the period from 1 January to 31 December 2012 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 2012.

The total Fund Branch liability towards the Company currently amounts to PLN 7,418,371.79 for  the period from 1 January to 31 December 2012.

A criterion for a contract to be considered significant:
The value of contracts exceeds 10% of the Issuer’s equity capital.