Mediclinic International PLC Swiss regulatory update (0800C)

TIDMMDC

RNS Number : 0800C

Mediclinic International PLC

10 April 2017

Mediclinic International plc

(Incorporated in England and Wales)

Company Number: 08338604

LSE Share Code: MDC

JSE Share Code: MEI

NSX Share Code: MEP

ISIN: GB00B8HX8Z88

LEI: 2138002S5BSBIZTD5I60

("Mediclinic", the "Company" or the "Group")

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

10 April 2017

Swiss regulatory update

Mediclinic International plc, the international private healthcare group, today announces the following updates in the regulatory environment of Hirslanden, its operating platform in Switzerland.

In the Group's interim results announcement on 10 November 2016, Mediclinic stated that the canton of Zurich was considering a levy on the proportion of privately insured patients treated in listed hospitals, including Klinik Hirslanden, known as the VVG levy and that the Swiss national outpatient tariff ("TARMED") was still in revision.

On Monday, 10 April 2017, the Zurich Cantonal Parliament voted not to approve the proposed VVG levy.

On TARMED, the Swiss Federal Government has released proposed adjustments as a transitional solution whilst healthcare providers and funders continue to negotiate and agree a revised TARMED tariff structure. The government proposal is targeting annual savings of around CHF700m across the public and private outpatient sectors. Outpatient services contribute less than 20% of Hirslanden revenues. Due to its implementation date on 1 January 2018, the impact on Hirslanden is expected to be limited in the 2018 financial year (to 31 March 2018). Based on initial analyses of the complex proposal, the expected annualised impact on Hirslanden outpatient revenues could be around 10% before any mitigating actions are considered which could include improved utilisation and increased efficiencies.

The Zurich Cantonal Parliament has also approved an amendment to the cantonal hospital law, providing a legal basis for the cantonal government to create a list of interventions that in future should generally be treated as outpatient rather than inpatient services. The final list of interventions will be agreed following a working group review.

Commenting today, Ole Wiesinger, CEO of Hirslanden, said:

"We acknowledge that the Zurich Cantonal Parliament has followed the recommendation of the Finance Commission and voted not to approve the proposed Zurich VVG levy and recognise that ongoing dialogue and engagement with the relevant public authorities is key to ensuring that we can continue to deliver high-quality, cost-efficient, healthcare to our patients."

About Mediclinic International plc

Mediclinic is an international private healthcare group with operating platforms in Southern Africa (South Africa and Namibia), Switzerland and the United Arab Emirates. Its core purpose is to enhance the quality of life of patients by providing acute care, specialist-orientated, multi-disciplinary healthcare services. Mediclinic also holds a 29.9% interest in Spire Healthcare Group plc ("Spire"), a LSE listed and UK-based private healthcare group.

Mediclinic International plc comprises 74 hospitals and 40 clinics. Mediclinic Southern Africa operates 49 hospitals and 2 day clinics throughout South Africa and 3 hospitals in Namibia with more than 8 000 inpatient beds in total; Hirslanden operates 16 private acute care facilities and 4 clinics in Switzerland with more than 1 600 inpatient beds; and Mediclinic Middle East operates 6 hospitals and 34 clinics with more than 700 inpatient beds in the United Arab Emirates.

The platform contributions to Group revenue for the financial year end 2016 were Hirslanden (53.6%), Southern Africa (30.8%) and the Middle East (15.6%).

During February 2016, the combination of the Company (previously named Al Noor Hospitals Group plc), with operations mainly in Abu Dhabi in the United Arab Emirates, and Mediclinic International Limited was completed. Mediclinic International Limited was a South African based international private healthcare group founded in 1983 and listed on the JSE, the South African stock exchange, since 1986, with operations in South Africa, Namibia, Switzerland and the United Arab Emirates (mainly in Dubai). The combination resulted in the renaming of the enlarged group to Mediclinic International plc.

Mediclinic has a primary listing on the Main Market of the LSE, with secondary listings on the JSE in South Africa and the NSX in Namibia.

For further information, please contact:

Investor Relations, Mediclinic International plc

James Arnold, Head of Investor Relations

[e-mail]

[phone]

Media queries

FTI Consulting

Brett Pollard/Ciara Martin

[phone]

Frank Ford

[phone]

Registered address: 1st Floor, 40 Dukes Place, London, EC3A 7NH, United Kingdom

Website: www.mediclinic.com

Corporate broker: Morgan Stanley & Co International plc

JSE sponsor: RAND MERCHANT BANK (A division of FirstRand Bank Limited)

NSX sponsor: Simonis Storm Securities (Pty) Ltd

This information is provided by RNS

The company news service from the London Stock Exchange

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April 10, 2017 08:45 ET (12:45 GMT)