Capio loses contracts within acute geriatrics and specialized addiction treatment in Stockholm
The Stockholm County Council (SCC) has resolved to award the contract to run acute geriatric activities at Dalen’s hospital in Stockholm and the contract to run specialized addiction treatment in SCC (today Capio Maria) respectively to other healthcare providers when the current contract periods end. The current acute geriatric contract expires on October 31, 2018 while the contract for specialized addiction treatment ends on December 31, 2018.
The loss of the contracts is expected to impact the Group’s financial development in 2019 negatively with net sales of around MSEK 470 and EBITA result of around MSEK 40. The loss of the contracts will not significantly impact the Group in 2018.
At the same meeting, SCC has resolved to introduce free healthcare choice according to the act (2008:962) on System of choice (Sw: Lag om valfrihetssystem, LOV) for geriatric out and inpatient care – Care Choice Geriatrics for healthcare providers with own facilities – from May 1, 2019. Capio is positive to the free healthcare choice introduction and looks forward to the possibility to expand and modernize healthcare for the elderly patients in Stockholm. This will complement Capio’s continuing advanced homecare and palliative care operations at Dalen’s hospital and the acute geriatric, advanced homecare, and palliative care activities at Nacka hospital. In 2017, total net sales of all healthcare within these areas of care in SCC amounted to approximately MSEK 3,260 and the need is expected to increase in line with an ageing population.
For information, please contact:
Olof Bengtsson, CFO
Telephone: +46 761 18 74 69
Kristina Ekeblad, IR manager
Telephone: +46 708 31 19 40
This is information that Capio AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16:05 (CET) on April 11, 2018.
Capio AB (publ) is a leading, pan-European healthcare provider offering a broad range of high quality medical, surgical and psychiatric healthcare services through its hospitals, specialist clinics and primary care units. Capio operates in five countries; Sweden, Norway, Denmark, France and Germany. In 2017, Capio’s 13,314 employees (average full-time equivalents) provided healthcare services during 5.1 million patient visits across the Group’s facilities, generating net sales of MSEK 15,327. Capio operates across three geographic segments: Nordic (57% of Group net sales 2017), France (35% of Group net sales 2017) and Germany (8% of Group net sales 2017). For more information about Capio, please see www.capio.com.