RHÖN-KLINIKUM AG | 11/06/2012

- Ad hoc - Worsening of group result in the third quarter of 2012 and adjustment of annual prognosis of RHÖN-KLINIKUM AG


  • Restructuring plan for the University Hospital Giessen and Marburg (UKGM) adopted, first time decrease of performance development in the third quarter, operative annual result in 2012 probably negatively affected by a further amount of EUR 15 million
  • Consensual model describes clear perspective for economically viable operation of UKGM
  • Expected operative annual result at group level adjusted by ca. EUR 20 million

The committees of RHÖN-KLINIKUM AG decided today on the restructuring plan prepared by a renowned management consultancy with regard to the University Hospital Giessen and Marburg (UKGM) and its result. The consensus based approach envisages the immediate implementation of a bundle of measures and thereby shows a clear perspective for business restoration. Within the third quarter negative effects on the result of UKGM have occurred that necessitate an adjustment of the outlook for 2012 and have a negative impact of around EUR 15 million on the results in the second half of the year.

A substantial reason for this development is the significant slowing of growth in the third quarter with regard to in-patient services as well as revenues at both UKGM sites. In this regard, also a higher than pro-rata increase of costs for materials and medical supplies as well as the most recent regulatory and legal changes with effects on expenditures and accruals for the second half of the year in connection with the preparation of the accounts negatively affect the result. Besides a relative seasonal weakness it furthermore becomes clear that the public discussion concerning the UKGM by different parties now also have a negative effect on the growth of the UKGM.

At group level, there are furthermore negative effects on the consolidated results due to increased demand for external consulting services, in particular for the analysis and planning of immediate measures with regard to UKGM by an external management consultancy and the financial and organizational aftermath of the takeover offer by Fresenius as well as changes in the composition of the Board of Management. These negative one of effects collectively amount to a mid-range single-figure million amount.

The Board of Management of RHÖN-KLINIKUM AG is optimistic that the perspective for the UKGM will improve noticeably on the basis of the analysis that has been performed and the concrete measures that have been developed and planned in the meantime. Besides the multitude of individual measures that are proposed in the restructuring concept and target increasing efficiency and productivity, there is particular focus on the further development of the medical strategy of the UKGM outside its region. The analysis has shown a significant market potential in this area that shall now be utilized in a targeted way. In this regard it will be necessary to position the UKGM even stronger as a maximum care hospital also beyond its region and to increase in a targeted way the cooperation with basic and standard care hospitals. At the same time, the exchange of knowledge and the positioning of the UKGM within the group network of RHÖN-KLINIKUM AG shall be developed further so that even more patients at group level shall be able to participate in the high level of medical care of university level medical care in Giessen and Marburg.

The effects mentioned above have now materialized in connection with the preparation of the interim report for the quarter ending 30 September 2012 and make it possible to give a preliminary indication for the result. On this basis, the group profit for the first nine months will amount to around EUR 70 million. The Company as of now furthermore expects that the above mentioned developments that put a burden on the operative result (EBITDA) will have an effect in the range of ca. EUR 20 million for the financial year of RHÖN-KLINIKUM AG. Consequently the outlook is adjusted as follows: RHÖN-KLINIKUM AG expects revenues of EUR 2.85 billion with a variation of 2.5 per cent for the fiscal year 2012. This revenue target is supplemented by a prognosis for the EBITDA of EUR 295 million and for the group profit of EUR 95 million, in each case with a variation of +/- 5 per cent. The detailed interim report for the quarter ending 30 September 2012 will be published on 8 November 2012.