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Corporate News | 04/11/2007

RHÖN-KLINIKUM AG: New decision in cartel proceeding

RHÖN-KLINIKUM AG / Legal Matter/MiscellaneousRelease of a Corporate-announcement, transmitted by DGAP - a company ofEquityStory AG.The issuer is solely responsible for the content of this announcement.
 Düsseldorf Court of Appeals dismisses appeal by RHÖN-KLINIKUM AGagainst the Federal Cartel Office RHÖN-KLINIKUM AG will have further legal steps reviewed Group’s growth strategy remains unchangedBad Neustadt a. d. Saale, 11 April 2007 ----- The Düsseldorf Court ofAppeals today dismissed the appeal lodged by RHÖN-KLINIKUM AG in the cartelproceeding relating to the district hospitals in Rhön-Grabfeld at the BadNeustadt and Mellrichstadt sites. On 10 March 2005 the Federal CartelOffice (FCO) prohibited the takeover of the two district hospitals byRHÖN-KLINIKUM AG. The Company lodged an appeal against this before theDüsseldorf Court of Appeals. On 5 October 2005 the Court initially issued aclarifying order calling on the FCO to conduct further investigations intothe objectively relevant market.The decision by the Court to apply merger control also to the regulatedhospital market is of far-reaching significance for the German healthcaresystem since it clearly contradicts health and social legislation in force.For years this legislation has been pressing for integrated concepts inhealthcare delivery, as inter-facility treatment attuned to the needs ofpatients brings proven quality and cost advantages.'We cannot accept such narrow interpretation of the legislation in itspresent form', said Wolfgang Pföhler, chairman of the Board of Managementof RHÖN-KLINIKUM AG; 'further legal steps will be reviewed immediately. Ifon this issue formalism is to be given precedence over the values and goalsof our healthcare system, patient care in Germany is likely to get moreexpensive and qualitatively worse.' The possibility of network-basedhealthcare delivery expressly provided for by the German legislator onaccount of the complexity of modern medicine is largely undermined, if notaltogether defeated, by the current stance of the Cartel Office asconfirmed by the Court of Appeals.'The district hospital in Mellrichstadt, which along with the districthospital in Bad Neustadt was also affected by this proceeding, has sincebeen closed due to a shortage of funding from the District ofRhön-Grabfeld. 'If cartel law leads to healthcare provision being abandonedin rural areas, something is going fundamentally wrong in Germany. I alsosee this as requiring clarification at the political level', added WolfgangPföhler.The Group’s expansion strategy remains unchanged in the wake of today’sdecision. Since the end of 2004 alone, RHÖN-KLINIKUM AG has purchased 16hospitals, including the heavyweight university hospitals in Gießen andMarburg. None of these transactions has given rise to objections underGerman cartel law. Although it is the market leader, the Company does noteven have a three per cent share of the market. The high growth potential –which is also non-contentious from a cartel-law standpoint – is thusobvious.Sallwey & Partner Telemannstr. 1860323 Frankfurt Tel. 069-97203628DGAP 11.04.2007
Language: EnglishIssuer: RHÖN-KLINIKUM AG Schlossplatz 1 97616 Bad Neustadt a.d.Saale DeutschlandPhone: +49 (0)9771 - 65-0Fax: +49 (0)9771 - 97 467E-mail: fire.ir@rhoen-klinikum-ag.comwww: www.rhoen-klinikum-ag.comISIN: DE0007042301WKN: 704230Indices: MDAXListed: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Hamburg, Stuttgart End of News DGAP News-Service