After nine months:

• Number of patients grows by 13.3% to over 1.53 million
• Revenues grow by 10.5% to € 1.90 billion
• EBITDA rises by 9.0% to € 228.5 million and EBIT by 9.7% to € 147.9 million
• Net consolidated profit improves by 10.4% to € 107.2 million

Forecast for 2010 specified:

• Revenues of € 2.55 billion
• Net consolidated profit of € 145 million

Positive outlook for 2011 despite challenging policy environment:

• Revenues: € 2.65 billion
• EBITDA: € 340 million (± 5%)
• Net consolidated profit: € 160 million (± 5%)

Bad Neustadt a.d. Saale, 4 November 2010. Three quarters into financial year 2010, RHÖN-KLINIKUM AG remains right on course. Patient numbers, revenues and earnings have once again witnessed a very positive performance in the third quarter. For the full year, the Company now expects revenues of € 2.55 billion (2009: € 2.3 billion) and net consolidated profit of € 145 million (2009: € 131.7 million).

“The very positive trend in our key ratios shows that our strategic direction is right”, said Wolfgang Pföhler, chairman of the Board of Management of RHÖN-KLINIKUM AG. “Patients have a high level of trust in the work and quality of our medical care. Having made considerable investments in our hospitals, we will further expand our service offering”.

In the first nine months of the current financial year, the Group’s network of 54 hospitals and 31 medical care centres (MVZs) treated a total of over 1.53 million patients. Compared with the same period last year, this translates into a growth of 13.3%.  Revenues rose over the same period by 10.5% to reach € 1.90 billion. After nine months, EBITDA stood at € 228.5 million, which corresponds to a 9.0% rise compared with the previous year. EBIT rose by 9.7% to € 147.9 million, and operating cash flow by 8.5% to € 188.7 million.

Net consolidated profit improved in the period from January to September by 10.4% to   € 107.2 million. After deducting minority interests in profit of € 4.2 million, earnings per ordinary share (EpS) now amounts to € 0.75.  The change in the number of shares following the capital increase in 2009 restricts the representative character of a year-on-year comparison (previous year: € 0.83). Based on the higher number of ordinary shares after the capital increase in 2009, an EpS of € 0.67 is calculated for the previous year.

Positive outlook for 2011 despite challenging policy environment

RHÖN-KLINIKUM AG sees itself well prepared for financial year 2011 as well. “The framework conditions of policy are challenging”, Pföhler said with a view to the German government's healthcare reform. “Nevertheless, we will further expand our care offering and continue our growth course. Also in 2011, the key elements being planned for hospital financing will not be able to completely offset the actual cost increases. How high our growth will be next year will also ultimately depend on the specific terms of remuneration that are worked out in the new legislation.”

Based on information available thus far, the hospital group is targeting revenues of         € 2.65 billion for financial year 2011. This revenue target is accompanied by an EBITDA forecast of € 340 million and an expected net consolidated profit of € 160 million. Given the uncertainty over the final legislative environment, fluctuations in the range of ± 5% are considered possible.

Helping shape system change

RHÖN-KLINIKUM AG intends to help shape this system change. This change is being marked in particular by a shift of many inpatient services into the outpatient area along with advances in medical technology; at the same time, though, demographic trends are also calling for new answers. “Our objective is unchanged: we seek to ensure a high quality of medical care for all patients at reasonable costs, whilst escorting the Group’s development towards becoming an integrated healthcare provider”, Pföhler said. For example, RHÖN-KLINIKUM AG has prepared its market entry into the field of ophthalmology so as to provide patients with innovative service offerings. Like almost no other field, ophthalmology provides a prime example of how inpatient services are being shifted into the outpatient segment.

Working together with the state as an effective partner in providing basic services

As planned, RHÖN-KLINIKUM AG this year began integrating into the Group's network the MEDIGREIF Group (comprising five hospitals and two medical care centres in the federal states of Mecklenburg-West Pomerania and Saxony-Anhalt), thus succeeding in broadening its healthcare network. Integration of Klinik Hildesheimer Land GmbH with its focus on geriatrics have got off to a good start. Here Group is planning to strengthen its medical care networks in the area of acute geriatrics as well as geriatric, cardiological and orthopaedic rehabilitation.

According to Pföhler, RHÖN-KLINIKUM AG is among best placed companies in the sector when it comes to further acquisitions. Given the tight budget situations of many municipalities, the question is not whether but when further privatisations will take place. This becomes very clear from the example of the Kiel-Lübeck university hospital. “We must not make cut-backs at the expense of medical care in cities and municipalities”, Pföhler said. “I am certain that competent and reliable partners for basic public medical care like RHÖN-KLINIKUM AG will continue to be much sought after. We have many years of expertise and experience in the area of restructuring and medical care which we offer for this end – but of course not at any price. We are confident of being able to expand our network by further facilities in specific areas”, Pföhler said in conclusion.