NEW REIMBURSEMENT SYSTEM IN POLAND
The Polish National Health Fund (Narodowy Fundusz Zdrowia, NFZ) is now implementing its new reimbursement system and this will result in changes to our contracts with effect from 31 March. Medicover will no longer provide NFZ services of Cardiac Surgery Care and some general services, but our Cardiology and ICU (Intensive Care Unit) contracts are still under consideration of NFZ in terms of opening tender procedures.
In 2017, all contracts with NFZ accounted for 1.5% of total revenue for Medicover and 3.1% for Healthcare Services’ revenue. The contracts that end on 31 March correspond to EUR 8.8 million, while cardiology and ICU contracts that are still under consideration correspond to EUR 3.9 million. The cardiology and ICU contracts are accretive to divisional operating margin. The negative potential impact on EBITDA from the cancellations of contracts is estimated to a range of EUR 0.2-1.5 million in 2018 and with no impact in 2019.The final outcome within the range, will depend on the further actions taken by the NFZ, and this is expected during March.
Medicover Hospital will use this as an opportunity to expand its range of fee for service capabilities which will replace this revenue over time.
“We are proud of the services we provide at the Wilanow hospital in Poland and look forward to providing a service to the NFZ, should it be needed over the longer term. We are preparing the organisation for different outcomes and have already started to reallocate resources”, says Fredrik Rågmark, CEO Medicover.
For further information, please contact:
Paula Treutiger, Director Corporate Communication and Investor Relations
+46-733-666599
Paula.treutiger@medicover.com
Medicover is a leading international healthcare and diagnostic services company and was founded in 1995. Medicover operates a large number of ambulatory clinics, hospitals, specialty-care facilities and laboratories and the largest markets are Poland and Germany. In 2016, Medicover had revenues around €0.5 billion and 14,400 employees. For more information, go to www.medicover.com
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