Does the fact that most of the EMC Group's revenues is derived from the National Health Fund involve excessive risk?
EMC Group's revenue structure due to the structure of the payer in the country: more than 80% of the total expenditure on medical services in Poland is still public expenditure. The NHF is the largest and most reliable payer. EMC Group minimizes the risk of dependence on the NHF through a wide range of offered services which are separately contracted, high quality services, careful observance of the terms of contracts and financial settlements with the NHF as well as the fact that the units are all located in the areas exhibiting a strong demand for healthcare services (e.g. hospitals in Ozimek, Zabkowice Slaskie and Piaseczno), which cannot be easily met due to the lack of alternative healthcare providers. At the same time the value of commercial services has increased from year to year.
Has the company issued preference shares?
1,500,038 Series A shares are registered preference shares as to voting rights with a ratio of 2:1. The shares were issued in 2004 in connection with the merger between EuroMediCare Medical Institute Sp. z o. o. and EMC Services Sp. z o. o., and were allocated to the founders of EMC Medical Institute S.A. Apart from the abovementioned, no other shares are privileged either concerning vote, or in any other way.
Do patients of EMC as a private entity need to pay for services rendered?
No, the National Health Fund is the financing agent of the vast majority of services provided by EMC Group hospitals and clinics. From the patients’ viewpoint such services are free. However, due to limitations of the system of universal health insurance, patients turn to the EMC Group units for services beyond the general system. In that case, expenses are covered directly by patients or by insurance companies (additional insurance ) and companies (Medical Package).
How many entities make up the Group EMC Medical Institute?
The Capital Group EMC Medical Institute consists of 9 commercial entities, while EMC Medical Institute S.A. is the parent. Total Group operates 8 hospitals and 16 out-patient clinics in five provinces.
Does EMC Medical Institute fully control the companies of which shares it holds?
Yes, all the companies of which EMC Medical Institute SA hold the shares are subject to full control of the Company and their financial results are consolidated using the full method.
What is the relationship between the company’s short-term debt and current assets?
In the structure of current assets of EMC, as a service company, inventories represent a small portion. Due to the NHF as the principal payer, the receivables have maturity dates typically up to 30 days. Short-term liabilities primarily involve investment loans and the value of short-term liabilities in the balance sheet covers payments for up to 12 months. In addition, the investments made are a source of cash through depreciation.
Is it true that there are no queues in private hospitals that operate under a contract with the NHF?
The vast majority of services financed by the NHF involve limited services. This means that regardless of whether the hospital is private or public the number and value of services performed are limited by the provisions of the contract with the National Health Fund. Therefore, the form of ownership essentially has no impact on waiting time for a particular service.What inclines patients to use the healthcare services offered by EMC Instytut Medyczny ,both those performed free of charge on the basis of a contract with the NHF as well as the services provided commercially, is the fact that the facilities, the equipment and the healthcare services by medical personnel are of standard quality. As far as commercial health services are concerned, a patient may expect waiting time to be considerably reduced.
Is it possible that the NHF's expenditure on health care in a given year might be lower than in the year before?
Resources for financing the NHF’s health expenditure mainly, but not exclusively, derive from universal health insurance contributions which are generally made for the individuals working under employment contract and consequently covered by compulsory health insurance by their employer.
Weaker economic conditions are likely to result in lower revenues from healthcare contributions. However, the Act on health services that are financed from public funds, contains certain restrictions (Article 118), which indirectly soften or even eliminate this effect. So far, the history of the NHF shows that expenditure on healthcare has risen rapidly and consistently from year to year.
Why do the majority of EMC's revenues comes from the National Health Fund?
The structure of EMC MI revenues corresponds to the financing structure of total expenditure on healthcare in the country: for example, in 2009, almost 85% of expenditure on healthcare services came from public funds. The NHF is a demanding but also a very reliable payer. Therefore, health services performed under a contract with the NHF are more resistant to economic downturns compared to services financed through private spending.
What does it mean that the foundation of universal health insurance is based on social solidarity?
Basically, this means that each insured person, regardless of how high the contribution that they pay is, is provided with the same scope of healthcare services.
Does the company protect itself against the effects of medical malpractice?
Irrespective of the Company’s organizational policy, intended to ensure safety and high standard of patient care, quality control, biological and chemical monitoring, compliance with the procedures of ISO 9001:2008 quality management system, and the use of Peri-Operative Control Chart (World Health Organization ( WHO) Safe Surgery Saves Lives Initiative), the capital group companies hold a Medical Malpractice Civil Liability Insurance Policy.
