District Court’s ruling on the dispute between Pihlajalinna’s subsidiary Jämsän Terveys Oy and the City of Jämsä
Pihlajalinna Plc Stock exchange release 5 April 2022 at 9:50 a.m.
District Court’s ruling on the dispute between Pihlajalinna’s subsidiary Jämsän Terveys Oy and the City of Jämsä
Jämsän Terveys Oy has been responsible for most of the social and healthcare services of the residents of Jämsä since 2015. The City of Jämsä owns 49 per cent of the company and Pihlajalinna 51 per cent. On 4 April 2022, the District Court of Central Finland gave its ruling on the dispute concerning the service agreement between Jämsän Terveys Oy and the City of Jämsä.
In its ruling, the District Court ruled in favour of the City of Jämsä with regard to the determination of the annual price. In the case of costs that had increased due to the authorities’ requirements, there were grounds for a price change; however, the District Court did not consider the evidence provided by Jämsän Terveys Oy to be sufficient in terms of cost effects and the amount of the claim. With regard to the cost liability of the hospital district’s investments, the District Court considered, on the basis of the evidence presented, that it could not be established that Jämsän Terveys Oy participated in the financing of the investment costs to the extent presented in the counterclaim.
As a result of the District Court’s ruling, Pihlajalinna Group will face an approximately EUR 2.3 million negative impact on the result attributable to the owners of the parent company. The ruling does not have an immediate material impact on cash flow. The effects of the District Court’s ruling are treated as adjustment items and therefore they do not influence the current year’s profit guidance.
The ruling is not final.
“We will read the District Court’s ruling carefully and consider what measures are necessary,” says Joni Aaltonen, Pihlajalinna Group’s CEO.
Additional information:
Joni Aaltonen, CEO
Enquiries through Pihlajalinna IR communications:
Merja Kössi, Corporate Communications Manager, tel. +358 40 525 2845 or merja.kossi@pihlajalinna.fi
Distribution:
Nasdaq Helsinki
Key media
investors.pihlajalinna.fi
Pihlajalinna in brief
20-year-old Pihlajalinna (Nasdaq Helsinki: PIHLIS) is one of the leading private providers of social, healthcare and wellbeing services. The Group provides services to private individuals, companies, insurance companies and public sector entities, such as municipalities and joint municipal authorities, across Finland. The Group provides general practitioner and specialised care services, occupational healthcare and dental care services and also residential and wellbeing services, for example. The Group, in cooperation with the public sector, offers social and healthcare service provision models to public sector entities with the aim of providing high-quality services. Read more at investors.pihlajalinna.fi.