Report no. 6/2014

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. announces that on 10 January 2014 the Company received annexes to the contracts with the National Health Fund - the Zachodniopomorskie Voivodeship Branch in Szczecin (the Fund Branch) in which the terms and conditions of providing healthcare services such as inpatient treatment and therapeutic rehabilitation have been defined for the period from 1 January to 31 December 2013.
 

Healthcare services referred to hereinabove are provided by the hospital owned by EMC Instytut Medyczny S.A. - St. George's Hospital in Kamień Pomorski.
 

The Issuer informed about the contracts concluded by St. George's Hospital in Kamień Pomorski  with the Fund Branch concerning rendering services in the previous year (2013) in its current reports nos. 1/2013 of 02.01.2013 and 104/2013 of 21.11.2013.

 

The contract for the provision of healthcare services such as inpatient treatment, marked as 16-00-02979-14-04/03-01-11-14 concluded on 18 December 2012, is the contract with the highest value.

 

The Parties to the contract are the Issuer and the National Health Fund- the Zachodniopomorskie Voivodeship Branch in Szczecin (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 has been established for the period from 1 January to 31 December 2014  totaling PLN 8,541,681.00. (This refers to the healthcare services rendered by the following departments: Internal Medicine,  General Surgery, Obstetrics And Gynaecology, Paediatrics And Neonatology in the period if 12 months of 2014 as well as the Emergency Department  in the period of 6 months of 2014)

 

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 2011 to 31 December 2014 with a possibility of its termination by each party upon a 3-month termination notice. The Fund Branch liability towards the Company specified in the contract refers to the period from 1 January to 31 December 2013, provided that medical serviced rendered by the Emergency Department are covered by the contract until 30 June 2014.

 

The total maximum Fund Branch liability towards  the Company with regard to healthcare services rendered  by St. George's Hospital in Kamień Pomorski under the said contracts currently amounts to PLN 8,573,345.60 for the period from 1 January to 31 December 2014. 

 

A criterion for a contract to be considered significant:

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