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7/2014 Significant agreement for hospital treatment concluded with the National Health Fund

The Management Board of Centrum Medyczne ENEL-MED S.A. informs that, on 10 February 2014, the company received a signed annex to the multiannual agreement concluded with the National Health Fund – Masovian Voivodeship Branch in Warszawa, which specifies the terms of financing of health-care services in the form of hospital treatment for the year 2014. Due to the annex, the value of the agreements concluded between the National Health Fund and the company since the publication of the previous current report No. 6/2014, dated 6 February 2014, amounts to PLN 5.089.344,00 net, thus exceeding the 10% threshold of the company’s equities.
The largest agreement concluded with the National Health Fund in the relevant period was an annex to a significant agreement with the value of PLN 5.089.344,00 net, which was received by the company on 10 February 2014.

The subject matter of the annex, which constitutes an agreement with the National Health Fund, is provision of health-care services in the form of hospital treatment in the field of neurosurgery, orthopaedics, general surgery, otolaryngology, ophthalmology, and vascular surgery. The above medical services will be provided in the two hospitals of the Centrum Medyczne ENEL-MED located in Warszawa, i.e. the Centrum Hospital (neurosurgery and orthopaedics) and the Zacisze Hospital (other specialties).

The agreement was concluded for the period from 20 February 2012 to 31 December 2016 (as an annex to the multiannual agreement, which specifies its value for the year 2014). Its value in the settlement period, i.e. from 01 January 2014 to 31 December 2014, may reach the maximum amount of PLN 5.089.344,00 net, with the exception of vascular surgery services, for which the financing amount was determined for the period from 01 January 2014 to 30 June 2014.

The agreement provides for the following contractual penalties for the company:
  1. In the case of non-performance or improper performance of the agreement for reasons attributable to the Service Provider, the Director of the Fund’s Branch may impose a contractual penalty on the Service Provider.
  2. In the case of issuing prescriptions to unauthorised persons or in the case of issuing prescriptions in unjustified cases, the Fund’s Branch may impose on the Service Provider a contractual penalty equivalent to the undue reimbursement of medicines made on the basis of the prescriptions, including the statutory interest accrued from the date of the reimbursement.
  3. In the case of issuing prescriptions for medical devices made available at request as referred to in the provisions issued on the basis of Article 38(4) of the act of 12 May 2011 on reimbursement of medicines, foodstuffs intended for particular nutritional use and medical devices (Journal of Laws No. 122, Item 696, as amended) financed in part or in full by the National Health Fund to unauthorised persons or in unjustified cases, the Fund’s Branch may impose on the Service Provider a contractual penalty equivalent to the amount of the undue financing, including the statutory interest accrued from the date of the reimbursement.
  4. In the case of non-performance of the obligation concerning obtaining in the relevant Fund’s Branch of an authorisation to use the e-WUŚ (Electronic Verification of Eligibility of Beneficiaries) system to make it possible to provide beneficiaries with the benefits ensuing from Article 50(3) of the act of 27 August 2004 on health-care services financed from public funds, the Fund’s Branch may impose a contractual penalty on the Service Provider in the amount of 1% of the amount due specified in the agreement.