23/01/2014

Report no. 10/2014

Conclusion of a significant contract in St. Anthony's Hospital in Ząbkowice Śl.

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. reports  that on 23 January 2014 the Company received contracts concluded with the National Health Fund - the Dolnośląskie Voivodeship Branch in Wrocław (the Fund Branch) regarding healthcare services such as inpatient treatment, outpatient specialist care, outpatient specialist care (outpatient diagnostic and cost-consuming services)as well as primary health care in the scope of night and holiday health care for the period  1 January  to 31 December 2014.
 
Healthcare services referred to hereinabove are provided  by St. Anthony’s Hospital in Ząbkowice Śl. owned by EMC Instytut Medyczny S.A.
 
The Issuer informed about the contracts concluded with the Fund Branch concerning services rendered by St. Anthony’s Hospital in Ząbkowice Śl. in the previous year (2013) in its current reports nos. 16/2013 of 05.02.2013; 40/2013 of 27.05.2013; 78/2013 of 08.08.2013; 103/2013 of 21.10.2013; 4/2014 of 10.01.2014.
 
The contract for the provision of healthcare services such as inpatient  treatment, marked as 03/1/3202053/01/2014/01 concluded on 20 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 inpatient treatment by the Issuer.
 
The maximum amount of Fund Branch liability towards the Issuer in the period from 1 January 2014 to 31 December 2014 totals PLN 10,680,683.00. 
 
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 1 January to 31 December 2014.
As a result of concluding the said contracts, total maximum Fund Branch liability towards the Company for services rendered by St. Anthony’s Hospital in Ząbkowice Śl. currently amounts to PLN 12,924,702.20 in 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.