Agreement concluded between Bure and Stockholm County Council regarding St Görans

Agreement concluded between Bure and Stockholm County Council regarding S:t Görans Hospital Negotiations were today concluded between Stockholm County Council and Bure Health Care regarding S:t Görans Hospital. The parties have thus completed the general agreement from May which comprised acquisition of the shares in S:t Göran, and the terms and conditions for the hospital's health care production. In addition, the agreement contains investments in, among other things, health care development. Bure Health Care Corporation, which assumes the responsibility for the operation of the hospital on 15 November, will now have an annual salesrate of SEK 3.8 billion and 4,550 employees. "- S:t Göran becomes Bure Health Care Corporation´s base for new forms of patient-controlled health care programs, IT Support and organisation development. The objective is more efficient health care with a clear focus on the patient," says Per Båtelson, President of Bure Health Care Corp. S:t Göran now becomes a subsidiary of Bure Health Care Corp., the leading company in Sweden for publicly-financed health care. The hospital will continue to produce health care at the request of Stockholm County Council. For patients, the change in ownership will thus not involve any difference with regard to patient charges and the opportunity to get treatment in the hospital. "- S:t Göran is already one of the most successful hospitals in Sweden. With Bure as the new owner, we are able to continue to develop in the direction of a network hospital. This means care which is closer to the patients, investment in our spearhead segments and an ambition to become the work place of the future. The opportunity to make significant IT investments is an important contribution in the development," says Stellan Ungerholm, President of S:t Görans Hospital. The validity of the agreement is subject to approval by the Bure Board of Directors and the Stockholm County Council. Invitation to a news conference Bure Health Care Corp. and S:t Görans Hospital AB invite you to a news conference today. 12 October, at 11.00 am. Location:S:t Görans Hospital, Stockholm, Sweden, Hörsalen nd (main entrance, lift C, 2 floor) Participants: Per Båtelson, President of Bure Health Care Stellan Ungerholm, President of S:t Görans Hospital Gothenburg, 12 October 1999 Investment AB Bure (publ) For further information, please contact: Saila Horttanainen, Head of Corporate +46 706-22 Communication, Bure Health Care 76 06, +46 31-335 76 72 Per Båtelson, President of Bure Health Care +46 31-335 76 65 Knut Leman, Head of Corporate Communication, +46 31-335 Investment AB Bure 76 75 Facts about S:t Görans Hospital and Bure Health Care 12 October 1999 *S:t Görans Hospital AB S:t Görans Hospital provides care for the adult population in Stockholm County. In the North Health Care Region, in which S:t Görans Hospital is located, there are currently approximately 300,000 inhabitants. Since 1994, S:t Göran has been operated as a wholly-owned company of Stockholm County Council but will be transferred into Bure Health Care's ownership on 15 November 1999. The hospital has sales of approximately SEK 800M and around 1,300 employees. Operations at S:t Görans Hospital cover orthopaedics, surgery, medicine, anaesthetics, radiology, physiology, emergency department and service operations. *Bure Health Care Corporation Bure Health Care is the leading non-public care producer in Sweden with assignments on behalf of a large number of county councils and municipalities. In close collaboration with the principals, Bure Health Care realises new concepts which develop health care and make it more efficient for the benefit of the patients as well as staff and principals. The Company is established in Sweden, Norway, Denmark, Great Britain, Switzerland and Poland. With the acquisition of S:t Göran, the annual sales rate amounts to approximately SEK 3,8 billion and the number of staff to around 4,550 staff. One-third of the operations are located outside Sweden. Business Sectors which have a medical orientation: Specialist Care: Bure Health Care is involved with both institutional and non- institutional health care. The ambition is to provide care services across traditional specialist boundaries and authorities. By combining focusing on the patient, medical ethics and businessmanship, Bure aims to supply high- quality and resource-efficient care. In Sweden, operations are carried out via subsidiaries in Stockholm, Gothenburg, the Skåne Region, Örebro and Linköping. In Norway, activities are operated through the Volvat Group. The hospitals within Charter Medical of England Ltd and SA de la Métairie in Switzerland specialise in psychiatry. Elderly Care: The aim of the operations is to meet the increasing need for high-quality and individually-adapted elderly care. Bure invests in its own concepts, including integrated care and guaranteed accommodation, and refrains from participating in short-term procurement. Occupational Health Care: Occupational Health Care offers services which contribute to the well-being and profitability of companies and organisations in the long term. The supply of services covers various aspects of health such as wellness, health care, specialist care, rehabilitation, crisis support and work environment development. The largest part of the operations are found within Previa. Diagnostics: Laboratory medicine and diagnostic radiology for public and non- public health care are included in Business Sector Diagnostics. Within the laboratory medicine segment, clinical research is also carried out on behalf of the pharmaceutical industry. Bure Health Care forms part of Investment AB Bure which also carries out operations within IT, Training and Education, InfoMedia and Investments. Facts about the agreement 12 October 1999 *The agreement between Stockholm County Council and Bure Health Care Stockholm County Council and Bure Health Care have today concluded their negotiations regarding care at S:t Görans Hospital. The agreement is based on the general agreement which was entered into on 7 May this year. Bure Hälsa och Sjukvård AB takes over operations from 15 November 1999. Purchase price and payment Bure Hälsa och Sjukvård AB acquires the operations and shares in S:t Görans Sjukhus AB for SEK 250M. Bure Hälsa och Sjukvård AB receives payment for care at S:t Görans Hospital in accordance with the payment system with DRG points that applies to all hospitals in Stockholm County Council. Payment per DRG point will be SEK 22,300. At the same time, Bure Hälsa och Sjukvård AB takes over the full costs for pensions, insurance, environmental audit and IT systems, i.e. costs which were previously not paid by S:t Görans Sjukhus AB. Responsibility for personnel, medical quality and investments is also transferred to Bure Hälsa och Sjukvård AB. Orientation and volume Care orientation will be the same as now and with the equivalent volume as during 1999 for the next three years. Competition neutrality The County Council orders and finances all care with a demand for the right quality and the right price. The County Council is responsible for monitoring and evaluating the care provided. The County Council will work for competition neutrality and equal rules for its own care operations and the operations of S:t Görans Hospital. Property The hospital will be rented by Bure Hälsa och Sjukvård AB, with a rental agreement for ten years. The property is owned by Stockholm County Council and managed by Locum. Patient at the centre As a patient, one has the same rights within all care services in Stockholm County Council and the patient's fee is the same in all hospitals. The patients have the same opportunities as before to seek treatment at S:t Görans Hospital. The validity of the agreement is subject to approval by the Bure Board of Directors and the Stockholm County Council. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/12/19991012BIT00170/bit0001.doc http://www.bit.se/bitonline/1999/10/12/19991012BIT00170/bit0002.pdf