Report no. 32/2015

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., in connection with receiving as of 4 March 2015 contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch) signed by the subsidiary company “Mikulicz” sp. z o.o. regarding healthcare services in the scope of inpatient treatment, palliative and hospice care, nursing and care services in terms of long-term care, outpatient specialist care, outpatient specialist care (outpatient diagnostic and cost-consuming services), psychiatric care and addiction treatment as well as primary health care services for the period from 1 January to 31 December 2015. Healthcare services referred to hereinabove are provided by the subsidiary company “Mikulicz” Sp. z o.o. in Świebodzice owned by EMC Instytut Medyczny S.A. The Issuer informed about the contracts concluded by Mikulicz sp. z o.o. with the Fund Branch concerning rendering services in the previous year (2014) in its current reports nos. 16/2014 of 27.01.2014, 23/2014 of 04.02.2014, 64/2014 of 04.07.2014, 81/2014 of 22.08.2014, 87/2014 of 26.09.2014, 104/2014 of 5.12.2014 and 28/2015 of 21.02.2015.
The contract for the provision of healthcare services such as inpatient treatment, marked as 03/1/3202027/01/2015/01 concluded on 21 February 2015, is the contract with the highest value. The Parties to the contract are the subsidiary of 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 inpatient treatment by the Issuer.The maximum amount of Fund Branch liability towards the Issuer for the period from 1 January 2015 to 31 December 2015 is PLN 10,467,749.40.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 subsidiary of the Issuer -Mikulicz 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 -Mikulicz 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. In the case of failure to obtain authorization from the Fund Branch to use e-WUŚ in order to ensure that entitled beneficiaries are provided with health care financed from public funds, a penalty of up to 1% of the amount referred to in the abovementioned contract may be imposed on the subsidiary of the Issuer -Mikulicz Sp. z o.o. Contractual penalties specified above shall be imposed pursuant to provisions stipulated in General Terms and Conditions of the contracts. The contract has been concluded for the period from 1 January 2012 to 31 December 2016 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 2015. As a result of signing the said contracts, total Fund Branch liability towards the subsidiary company for the period from 1 January to 31 December 2015 currently amounts to PLN 13,959,064.80.A criterion for a contract to be considered significant: The value of contracts exceeds 10% of the Issuer’s equity capital.