Report no. 31/2014

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. reports that on 18 February 2014 the Company received from Regionalne Centrum Zdrowia Sp. z o. o. in Lubin:

-  contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch), regarding healthcare services in the scope of: inpatient treatment, inpatient treatment–health programs (drug prescription program), outpatient specialist care (outpatient  diagnostic and cost-consuming services), therapeutic rehabilitation, primary health care, palliative and hospice care, nursing  and care services in terms of long-term care for the period 1 January to 31 December 2014,

-annexes  to the contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch), regarding healthcare services in the scope of: inpatient treatment, outpatient specialist care (outpatient  diagnostic and cost-consuming services), therapeutic rehabilitation, for the period 1 January to 31 December 2013.

Healthcare services specified in the above contracts and annexes are provided by the hospital managed by the subsidiary company  of EMC Instytut Medyczny S.A. - Regionalne Centrum Zdrowia Sp. z o. o. in Lubin.

 

The Issuer informed about EMC Instytut Medyczny SA running the hospital in Lublin in its current report no 24/2014 of  11.02.2014, when the Preliminary  Agreement for Sale of shares of the Regionalne Centrum Zdrowia Sp. z o. o. was signed.

 

Among contracts concluded by Regionalne Centrum Zdrowia Sp. z o. o.  with the Fund Branch, the contract for the provision of healthcare services such as inpatient treatment, marked as 03/1/3302673/01/2014/01 is the contract with the highest value.

 

The Parties to the contract are the subsidiary of the Issuer -Regionalne Centrum Zdrowia Sp. z o.o 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 Regionalne Centrum Zdrowia Sp. z o. o.

 

The maximum amount of Fund Branch liability towards the Issuer specified in the totals PLN 45,622,522.00 contract in the period 1 January to 31 December 2014.

The subsidiary of the Issuer -Regionalne Centrum Zdrowia Sp. z o. o 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 subsidiary of the Issuer -Regionalne Centrum Zdrowia Sp. z o.o  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 subsidiary of the Issuer -Regionalne Centrum Zdrowia Sp. z o. o. 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 Fund Branch liability specified in the contract refers to the period 1 January 2014 to 31 December 2014.

 

The total maximum Fund Branch liability towards  the subsidiary of the Issuer with regard to healthcare services rendered by Regionalne Centrum Zdrowia Sp. z o. o. currently amounts to PLN 53,424,982.12 for the period 1 January to 31 December 2014. As a result of signing the abovementioned annexes to the contracts with the NHF with respect to healthcare services provided in the period 1 January to 31 December 2013, the value of the contract with highest value has changed and and  it currently amounts to PLN  49,847,422.00. The total maximum Fund Branch liability towards  the subsidiary of the Issuer is PLN 57,857,042,94  for the period 1 January to 31 December 2013.

 

A criterion for a contract to be considered significant:

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