The Best Achievable Quality of Life for Every Patient
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Capio Annual Report 2016 The best achievable quality of life for every patient Contents This is Capio 2016 in brief Comment by the President and CEO 4 Trends for healthcare 6 Strategy and targets 12 Modern Medicine and Modern Management 13 The Capio model 16 Capio Management Program 18 Capio’s view of medical quality 19 Measuring healthcare 20 Capio’s financial model 22 Financial targets and development 23 Capio’s role in society 24 A partner for public healthcare 25 Business ethics 26 Employees 28 Environment 32 Sustainability work in practice 34 The European healthcare market 36 Sustainability work Business overview 44 Organization and care levels 45 in practice Capio Nordic 46 34 Capio France 60 Capio Germany 70 Contents Financial Reports 74 Capio’s view of medical quality Administrative report 75 Group Financial reports 84 Accounting principles 91 19 Notes 91 Parent Company Financial reports 125 Accounting principles 129 Notes 129 Auditor’s report 134 Definitions 137 Corporate Governance Report 138 Group Management 146 Board of Directors 148 The share 150 History 154 Contact 155 18 Capio Management Program Financial targets and development 23 2016 in brief • Net sales MSEK 14,069 (13,486) and organic sales • Supported by the Modern Medicine and Rapid Recov- growth 3.3% (2.9) ery strategy in France, volume growth and productivity • Operating result (EBITA) MSEK 644 (592) and margin improvements compensated for the largest part of the 4.6% (4.4) French price reductions, which impacted net sales and • Continued progress in the implementation of Modern results by MSEK -87 in 2016 Medicine. AVLOS reduction of 2.7% and a continued • Capio Clinique de Domont, the first pure day surgery shift from in- to outpatient care center ever in France, opened in Domont outside Paris • 270 participants in Capio Management Program to • New outpatient authorizations and growth of geriatric support Modern Management businesses supported the patient growth in Germany • In Nordic, the productivity program in Capio Proximity • New market entry into Denmark by the acquisition of Care was successfully implemented according to plan the Danish hospital group CFR Hospitaler, adding to • A new and larger accident and emergency department Capio’s Nordic home base and pan-European footprint was opened at Capio S:t Göran’s hospital in Stock- holm, Sweden, increasing the capacity to more than 100,000 patients per year “ The continued strong development is a result of Capio’s focus on implementing what we call Modern Medicine.” Thomas Berglund, President and CEO % 8.8operating result (EBITA) growth This is Capio Mission Values Cure. Relieve. Quality. Compassion. Comfort. Care. We have a mission: to cure, relieve and comfort anyone When we require medical care, we are vulnerable seeking medical care from Capio. This is also what is stated and perhaps helpless, or at least in need of assis- in the oath created around 2,400 years ago by Hippocrates, tance. We may also have a limited insight and the father of medicine. Modern medical developments mean knowledge of our illness and how best to treat it. that more and more diseases can now be cured, or at least This places a heavy burden of responsibility on the eased. At Capio, we are doing everything in our power to make healthcare service and its staff, far beyond the the most of this development. We use all the knowledge and responsibility that applies to many other activities experience of our staff to ensure that new advances benefit and situations in life. The foundation for Capio’s patients as quickly as possible. New, improved methods and activities is three core values to manage this procedures are only viable when they are implemented in day- responsibility and to achieve the best achievable to-day medical care. There are times when a cure is impossible quality of life for every patient. and relief is merely temporary. In these cases, comfort is an important part of the care offered. We must be able to see the person behind the illness; see their anxiety and sorrow, and do everything in our power to support them. It is important to remember this personal aspect of medical care in the face of the advanced technology used today, not to mention the thousands of sophisticated treatment methods that are part of modern healthcare. 4.7 million patient visits1 Vision The best achievable quality of life for every patient. The aim of all healthcare work is to ensure the best achievable quality of life for each and every patient. Many make a full 12,435 recovery, while others have the chance of a more normal life. employees2 A patient’s self-esteem and dignity shall also be respected and reinforced even as his or her life draws to a close. Our key drivers are quality, compassion and care. 14,069 MSEK in net sales Cover photo: Dr Moulay Meziane is an orthopedic surgeon at the day surgery center 1 Number of inpatient and outpatient visits. at Capio Clinique de 2 Number of employees as full-time equivalents Domont, France. on average during the year. A pan-European footprint Capio Nordic Net sales share of Group 54% Employees share of Group Net sales Employees share of Group share of Group 46% 8% 10 % Capio Germany Capio France Net sales Employees share of Group share of Group 38% 44% We take care of the patient in all phases of life from maternity care to palliative care. COMMENT BY THE PRESIDENT AND CEO Quality drives productivity in European healthcare The year that has passed Improved financial performance … The year 2016 was another period of strong development, with around 4% organic sales growth in the Nordic countries and Germany, and 2.4% in France which, in view of the price decrease of around 2%, is in line with the performance in the Nordic countries and Germany and better than the market. The result (EBITA) for the Group increased by 9%, of which 17% in the Nordic countries and 12% in Germany, while France was unchanged, since it was affected by the significant price decrease. Backed by strong development in earnings per share, the dividend per share is proposed to increase from SEK 0.5 to SEK 0.9, representing 31% of profits after tax and in line with the company’s policy. CEO Thomas Berglund together with Charlotta Paulsson … driven by Modern Medicine giving Rapid Recovery … and Tomas Leijon, both employees at the Swedish emergency hospital Capio S:t Göran. The continued strong development is a result of Capio’s focus on implementing what we call Modern Medicine giving Rapid Recovery for our patients. This may sound obvious, but the pace Proximity Care. For Germany, the corresponding figures are 4% of change in healthcare is generally slow and we are ahead of and 12%. The general hospitals show the strongest develop- the competition in speeding up this development. By using less ment, with specialist clinics maintaining high performance. invasive methods, recovery times can be shortened and patients can get back to normal life more quickly. At Capio, we can see … and France almost fully compensated for the price patients getting back to normal life faster in all our markets and decrease of 2% the development in France is especially notable, with several During the last two years France has been affected by govern- unique achievements (see more on page 66). ment price cuts of 2–2.5%. In 2015, Capio France compensated for about half of the price decrease, while in 2016 all but 0.3 per- … and by Modern Management making change happen centage points was compensated in the EBITA margin. The result The key to the more rapid implementation of new methods is an (EBITA) basically remained unchanged from 2015 to 2016. organization that empowers the front line close to patients and allows every team and team member to make a difference. Focus going forward Contrary to what one could imagine, in many countries and Digitalization of patient relations gives more precise with many providers the healthcare organization is traditionally diagnoses and better availability for patients top-down managed, rather than bottom-up, as seen in modern Digitalization of patient relations has two aspects. The first con- service organizations. This is emphasized by the strong public cerns using advanced databases of questions to help define the service and governmental heritage in the sector, with consider- exact condition of the patient and thus get a precise diagnosis able influence from public administration. and treatment. These questions can be answered by the patient The crucial aspects of faster development are resources, at home, before the consultation. The doctor will then go through responsibility and authority close to patients and the day-to-day the answers, concluding with what is called an anamnesis in work. Supporting staff resources should be organized as close medical language. The consultation will thus be better prepared as possible to the front-line organization, rather than close to and can be more focused on the patient. head offices. The second aspect of digitalization concerns virtual consul- tations online. By using the same methodology, with questions Strong development in the Nordic and German segments … asked on the basis of symptoms, a number of lighter and well- For the Nordic countries, the focus on Modern Medicine and defined diagnoses can be treated. This will be a 24/7/365 service Modern Management has led to close to 4% organic growth and that is instantly available when required by the patient, and is a 17% increase in results (EBITA). All business areas in the Nordics provided by a network of virtual doctors. have improved their results, with especially strong performance Capio will introduce both of these digital tools during 2017.