Corporate News

Bad Neustadt / Saale | 10th January 2019

RHÖN-KLINIKUM AG enters into the new world of telemedicine in Germany together with Medgate - Memorandum of understanding to establish joint company with telemedicine provider Medgate

• RHÖN-KLINIKUM AG and Swiss telemedicine provider Medgate sign a memorandum of understanding on extensive cooperation in growing market for telemedicine  
• Establishment of Medgate Germany with RHÖN-KLINIKUM AG holding 51 per cent majority stake while Medgate holds 49 per cent stake  
• Medgate Germany provides simple, fast and personal access to physicians with its digital medical consultations via smartphone app, video conference and telephone  
• This new business transaction also supplements cross-sector campus concept linking out-patient and in-patient medical services such as preventative healthcare, treatment, nursing and rehab services, follow-up care and now also includes telemedicine as an upstream possibility to obtain treatment  
• RHÖN-KLINIKUM AG is considering obtaining stake in Medgate Holding AG which represents Medgate's international activities and/or one of its subsidiaries or possibly establishing an additional joint company with Medgate

RHÖN-KLINIKUM AG, one of the leading healthcare providers in Germany, is entering into the new world of telemedicine in Germany. It today signed a memorandum of understanding (MoU) with Swiss telemedicine provider Medgate to establish a joint company. With the agreement and subject to the consent of the supervisory board the German healthcare provider plans to render telemedicine and digital medical services in Germany. Pursuant to the MoU RHÖN-KLINIKUM AG wishes to hold a 51 per cent stake in the newly established company ("Medgate Germany") with its registered office in Germany. Both parties have agreed not to disclose the financial details of the agreement.

In future Medgate Germany - powered by RHÖN-KLINIKUM - shall, within the German regulatory framework, provide patients with advice and treatment for both urgent and/or general medical questions via telephone, internet or video conference. With this new possibility RHÖN-KLINIKUM AG wishes to help close the widening gaps in healthcare particularly in rural areas and also offer modern medical care corresponding to the prevailing consumer behaviour. The technical preconditions such as a smartphone or computer equipped with a camera already generally exist in most households. This progressive offer is directed towards the needs of society as it becomes more and more digital requiring efficient and easy to use healthcare services which are available especially quickly and anywhere.

Medgate Germany is striving for market leadership

With Medgate Germany both companies are striving for market leadership in the field of telemedicine and digital medical services in Germany. Stephan Holzinger, CEO of RHÖN-KLINIKUM AG, stated: "Medgate Germany - powered by RHÖN-KLINIKUM - has the potential to develop into a substantial additional business sector for our company. As a leader of innovation in healthcare we already offer telemedical services. With Medgate Germany we shall greatly expand such services and also significantly continue the digital progress already commenced at RHÖN-KLINIKUM AG during my time as CEO. We are exploiting the opportunities offered by digitalisation to provide our patients with excellent medical services which can be rendered without long journeys having to be undertaken and unnecessary waiting times endured while medical advice, diagnoses and treatment can also be improved and offered in a faster and easier manner. Naturally we continue to remain a group of hospitals offering broadly based services of a high quality - while telemedicine allows us to add further value to our services in a prudent manner. With Medgate we have found an experienced business partner who shares our own high demands on quality and security with regard to telemedicine."

Medgate is pleased to have found a well-established partner in RHÖN-KLINIKUM AG for making its entry into the German market. Dr. Andy Fischer, CEO of Medgate, stated: "We share the vision of using digital assistance to develop efficient medical services of a high quality which can be offered to all patients in Germany on a long-term basis. The potential in Germany is huge. In Switzerland almost every person with health insurance currently has access to telemedical services which are actively being used every day. The new legislative situation now allows such a development in Germany too. We believe RHÖN-KLINIKUM AG is the ideal partner for such an innovative project," Fischer added.

Relaxing the ban on telemedicine will cause demand to riseRHÖN-KLINIKUM AG and Medgate are convinced that the gradual relaxation of the ban on telemedicine will cause the demand for telemedical services to rise significantly in Germany in the years to come. In May 2018 the annual general meeting of the German Medical Association (Deutscher Ärztetag) approved an amendment to the standard professional code of conduct for physicians working in Germany relaxing the hitherto applicable ban on the sole use of telemedicine; many federal states have now already implemented the modification.

In addition to the establishment of Medgate Germany RHÖN-KLINIKUM AG is considering obtaining a stake in Medgate Holding AG and/or one of its subsidiaries or the establishment of an additional joint company with Medgate in which the intellectual property and know-how required for the services of Medgate Germany will be bundled and further developed and the necessary IT solutions realized.

New business transaction with its offer of e-healthcare also supplements forward-looking campus concept

The planned business transaction to establish Medgate Germany also supplements RHÖN-KLINIKUM AG's flexible cross-sector campus concept. With its new campus concept, the cornerstones of which include preventative healthcare, out-patient and in-patient treatment, rehab services and close links to regional healthcare providers, RHÖN-KLINIKUM AG already offers forward-looking medical services in a rural area.

The use of numerous digital tools, such as the online management of appointments, the patient's medical history in digital form, electronic patient records (medical portal) or the medical cockpit - a type of search engine to process and analyse quickly large amounts of data in OP reports and x-ray records -, shall assist our employees, thereby reducing hectic situations and improving patient care.

About RHÖN-KLINIKUM AG

RHÖN‐KLINIKUM AG is one of the largest healthcare providers in Germany. The hospital group offers excellent medical care with a direct link to universities and research institutes. More than 830,000 patients are treated every year at the five group hospitals located in Bad Berka, Bad Neustadt, Frankfurt (Oder), Giessen and Marburg where approx. 16,700 employees work. With the RHÖN campus concept the Company is currently implementing a new and forward-looking project which raises fully comprehensive healthcare in rural areas to a new level of excellence and is geared to the growing needs of patients.www.rhoen-klinikum-ag.com

About Medgate

Medgate focuses on digital healthcare solutions to bring the physician to where he or she is needed by patients. Emphasis is also placed on the well-being of patients as well as on the benefit for society in general. Medgate was established in 1999 and currently employs over 330 employees in Switzerland, of whom over 100 are physicians. Since 2000 Medgate has been operating its teleclinic which is the largest telemedical centre in Europe. Medgate therefore possesses a large amount of experience and knowledge in the field of telemedicine. Consultations on the patient's doorstep are carried out in Medgate's miniclinics where there are also physicians available in clinics by Medgate's network of partners. Medgate's well-established concept is also exported abroad where Medgate is active in various countries such as the UAE, Philippines, India and the Czech Republic.

Contact Persons:

RHÖN-KLINIKUM AG | Head of Corporate Communication and MarketingElke PfeiferTelephone: +49 9771 65-1327 | E-Mail: elke.pfeifer(at)rhoen-klinikum-ag.com

RHÖN-KLINIKUM AG | Head of Investor Relations and TreasuryJulian SchmittTelephone: +49 9771 65-1536 | E-Mail: julian.schmitt(at)rhoen-klinikum-ag.com