Report no. 17/2013

Pursuant to §5 (1) (3) of the Regulation of the Minister of Finances of 19 February 2009 on current and periodical information provided by issuers of securities, the Management Board of EMC Instytut Medyczny S.A., in connection with receiving as of 5 February 2013 contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch) signed by the subsidiary company “Mikulicz” sp. z o.o. regarding healthcare services in the scope of  inpatient treatment, palliative and hospice care, nursing  and care services in terms of long-term care, outpatient specialist care, outpatient specialist care (cost-consuming outpatient diagnostic services), psychiatric care and addiction treatment as well as provision of  primary health care services for the period from 1 January to 31 December 2013.
 

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

The Issuer informed about the contracts concluded by Mikulicz sp. z o.o. with the Fund Branch concerning rendering services in the previous year (2012) in its current reports nos. 5/2012 of 20.01.2012; 16/2012 of 30.01.2012; 24/2012 of 15.02.2012; 52/2012 of 31.05.2012; 68/2012 of 02.07.2012; 74/2012 of 08.08.2012; 89/2012 of 05.09.2012 and 94/2012 of 07.09.2012.

The contract for the provision of healthcare services such as hospital treatment, marked as 03/1/3202027/01/2013/01 concluded on 21 January 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 such as inpatient treatment by the Issuer.

 

The maximum amount of Fund Branch liability towards the Issuer for  the period from 1 January 2013 to 31 December 2013 is up to PLN 10,733,697.60.
 

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 2012 to 31 December 2014 with a possibility of its termination by each party upon a 3-month termination notice. The total Fund Branch liability towards the Company specified in the contract refers to the period from 1 January to 31 December 2013.
 

Total Fund Branch liability towards the subsidiary company for the period from 1 January to 31 December 2013 currently amounts to PLN 14,105,946.00.
 

A criterion for a contract to be considered significant:

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