Report no. 67/2013

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 that on 2 July 2013 the Company received contracts concluded by the subsidiary company Powiatowe Centrum Zdrowia sp. z o.o. with the National Health Fund - the Pomorskie Voivodeship Branch in Gdańsk (the Fund Branch) regarding healthcare services in the scope of hospital treatment, outpatient specialist care and outpatient specialist care (cost-consuming outpatient diagnostic services), emergency medical services, and  primary health care in terms of night and holiday care and medical transport within primary health care for the period 1 January to 31 December 2013.
 

Healthcare services referred to in the said contracts are provided by the subsidiary company of EMC Instytut Medyczny S.A. "Zdrowie" sp. z o.o. in  Kwidzyń.

The Issuer informed about  EMC Instytut Medyczny SA taking over the hospital in  Kwidzyń in its current report no 53/2013 of 31.05.2013 when the preliminary  share sale and usage agreement for "Zdrowie" sp. z o.o. in  Kwidzyń was signed.
 

The contract for the provision of healthcare services such as hospital treatment, marked as  03/01/SZP/2013 nr 11/000840/SZP/11/13 concluded between the Fund Brunch and "Zdrowie" sp. z o.o. , is the contract with the highest value.

 

The Parties to the contract are the Issuer and the National Health Fund-  the Pomorskie  Voivodeship Branch in Gdańsk  (the Fund Branch).

 

The subject of the contract is the provision of healthcare services such as hospital treatment by the Issuer.

 

The maximum amount of Fund Branch liability towards the Issuer in the period from 1 January 2013 to 31 December 2013 is up to  PLN 21,926,320.16.

Currently, as annexed, the the value of the said contract totals 21,970,674.16 (an increase by PLN 44,354.00).

 

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 2011 to 31 December 2015 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 maximum Fund Branch liability towards the subsidiary company for the health care services rendered by  the Non-public Healthcare Centre "Zdrowie" sp. z o.o. in  Kwidzyń for  the period 1 January to 31 December 2013 currently amounts to PLN 27,892,264.82.

A criterion for a contract to be considered significant:

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