Report no. 8/2014

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 that on 17 January 2014 the Company received contracts concluded by the subsidiary company Powiatowe Centrum Zdrowia sp. z o.o. with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch) regarding healthcare services such as inpatient  treatment,  outpatient specialist care within the scope of comprehensive specialist outpatient care over a patient with a chronic disease, psychiatric care and addiction treatment, palliative and hospice care, therapeutic rehabilitation and  primary health care for the period  1 January to 31 December 2014.
 

Healthcare services referred to in the said contracts are provided by the subsidiary company of EMC Instytut Medyczny SA “Powiatowe Centrum Zdrowia” sp. z o.o. in Kowary.
 

The Issuer informed about the contracts concluded by “Powiatowe Centrum Zdrowia” sp. z o.o. in Kowary with the Fund  Branch concerning rendering services in the previous year (2013) in its current reports nos. 11/2013 of  31.01.2013; 37/2013 of 24.04.2013; 70/2013 of 23.07.2013; 86/2013 of 27.08.2013; 101/2013 of 13.11.2013; 3/2014 of 10.01.2014.

 

The contract for the provision of healthcare services such as hospital treatment, marked as  03/1/3402008/01/2014/01 concluded on 15 January 2014, 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 hospital treatment by the Issuer.

 

The maximum amount of Fund Branch liability towards the Issuer in the period 1 January 2014 to 31 December 2014 is up to   PLN  8,968,399.00.

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 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 2014.
 

Total maximum Fund Branch liability towards the subsidiary company for the period  1 January to 31 December 2014 currently amounts to PLN 14,191,425.87.
 

A criterion for a contract to be considered significant:

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