Report no. 26/2014

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  12 February 2014 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 as well as therapeutic rehabilitation for the period from 1 January to 31 December 2014.
 

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 ( 2013) in its current report no. 13/2013 of 31.01.2013. 

 

The contract for the provision of healthcare services such as hospital treatment, marked as 07-06-03688-14-08/06 (7R-1-01354-03-01-2011-2014/14 concluded on 24 January 2014, is the contract with the highest value.

The maximum Fund Branch liability towards the Issuer  with respect to the said contract totals PLN 19,785,301.00 in the period 1 January 2014 to 31 December 2014.

 

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 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 1 January 2011 to 31 December 2014 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 1 January 2014 to 31 December 2014.

The Total Fund Branch liability towards the Company for the period from 1 January to 31 December 2014 amounts to PLN 21,540,636.10.

A criterion for a contract to be considered significant:

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