Report no. 9/2015

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 20 January 2015 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 2015. 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 (2014) in its current reports nos. 8/2014 of 20.01.2014; 18/2014 of 29/01.2014; 43/2014 of 21.03.2014; 58/2014 of 03.06.2014; 79/2014 of 14.08.2014; 83/2014 of 05.09.2014; 94/2014 of 20.11.2014; 100/2014 of 28.11.2014 and 109/2014 of 19.12.2014.

The contract for the provision of healthcare services such as hospital treatment, marked as 03/1/3402008/01/2015/01 concluded on 19 January 2015, 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 8,981,723.00.

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 the said 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 - Powiatowe 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 - Powiatowe 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.
Failure to fulfill the obligation to obtain authorization from the Fund Branchto use e-WUS in order to ensure that entitled beneficiaries are provided with health care services financed from public funds, the Fund Branch may impose on the Subsidiary of the Issuer - Powiatowe Centrum Zdrowia Sp. z o.o a penalty of up to 1% of the amount referred to in the abovementioned contract.
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 30 June 2016 with a possibility of its termination by each party upon a 3-month termination notice.

The total maximum Fund Branch liability towards the subsidiary company amounts to PLN 16,964,762.02 for the period 1 January to 31 December 2015.
A criterion for a contract to be considered significant: The value of contracts exceeds 10% of the Issuer’s equity capital.