28.06.2017 1 EXPERTISE YOU CAN TRUST HIRSLANDEN PRIVATE HOSPITAL GROUP 28.06.2017 2 AGENDA I. The Hirslanden Private Hospital Group II. The Swiss public healthcare system III. Hirslanden’s fields of competence IV. Hirslanden’s community involvement 28.06.2017 3 I. THE HIRSLANDEN PRIVATE HOSPITAL GROUP 28.06.2017 4 VISION WE WILL BE RESPECTED THROUGHOUT SWITZERLAND. Because we deliver measurable top-quality medical outcomes, and concentrate all our activities on the needs of our patients. As the biggest provider of medical services, we unite all the relevant medical areas and the best doctors under one roof. All our activities are characterised by responsibility and sustainability. We thus guarantee long-term growth in Switzerland, and contribute towards Mediclinic International’s continuing growth as a successful international healthcare group. WE WILL BE PREFERRED LOCALLY. Because we deliver excellent patient care, our hospitals are firmly anchored in the local communities, and as an employer of choice we are able to provide qualified and loyal staff with professional challenge and development. We ensure aligned relationships with doctor communities, and build constructive relationships with all stakeholders. 28.06.2017 5 AT A GLANCE Key Figures 2016/17 Hospitals 16 in 11 Cantons Patient days1,2 466 025 Affiliated Doctors 1 708 Newborns 5 925 Employees 9 402 Length of stay3 4.6 days Patients1 100 293 Turnover CHF 1 704 m Key Figures as of 31 March 2017: 1 Inpatient admissions, without newborns / 2 Adult and maternity patients, source H+ / 3 Average in days, source H+ 28.06.2017 6 AT A GLANCE 24% Basic 45% Semi-private Private 31% 28.06.2017 7 16 HOSPITALS BETWEEN CONSTANCE AND LAKE GENEVA 28.06.2017 8 MEDICAL NETWORK 16 4 14 4 Hospitals Outpatient clinics Radiology institutes Radiotherapy institutes Aarau Meggen Lucerne Aarau Aarau Bern Basle Münchenstein Bern Bern (2) Lausanne Cham Zug Schaffhausen Schaffhausen Düdingen Männerdorf Geneva St. Gallen Düdingen Lausanne (3) Zurich Heiden Zurich Lucerne (2) Lausanne Basle Münchenstein Lucerne St. Gallen Zurich (3) 28.06.2017 9 HISTORY Salem-Spital Praxiszentrum am Bahnhof Bern Acquisition by UBS Bern Klinik Permanence Klinik Birshof Radiotherapie Männedorf Bern Münchenstein Basel Clinique La Colline Clinique Bois-Cerf Klinik Am Rosenberg Geneva Lausanne Heiden Hirslanden Klinik Meggen Acquisition BC Partners Meggen 1932 1944 1990 1997 1998 2001 2002 2005 2007 2010 2013 2014 2015 2016 2017 Take over of AMI CH Klinik Stephanshorn St Gallen Opening of Hirslanden Klinik Aarau Klinik Belair Klinik Hirslanden Aarau Schaffhausen Zurich Klinik Beau-Site Praxiszentrum AndreasKlinik Acquisition of Hirslanden Bern Düdingen Cham Zug by the South African based Mediclinic International Clinique Cecil Lausanne Praxiszentrum Klinik Im Park am Bahnhof Schaffhausen Klinik St. Anna Zurich Lucerne 28.06.2017 10 Effective from 01 June 2017 28.06.2017 11 GROWTH AT HIRSLANDEN 1/2 TURNOVER (in CHFm) EMPLOYEES (FTE, including employed doctors) CAGR: 5.7% CAGR: 6.2% 8,000 2,000 1,704 6722 1,563 1,647 6,213 6,573 1,437 5,530 1,500 1,270 1,314 6,000 5,065 1,218 4,576 4,871 1,091 1,134 4,166 4,343 1,000 4,000 500 2,000 0 0 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 28.06.2017 CAGR: Compound Annual Growth Rate; Key figures as of 31 March 2017 12 GROWTH AT HIRSLANDEN 2/2 PATIENTS (inpatient cases) PATIENT DAYS CAGR: 4.0% CAGR: 3.3% 120,000 500,000 453,741 469,167 466,026 98,609 100,293 418,771 94,037 381,995 388,288 396,488 100,000 87,248 360,121 361,564 82,669 400,000 77,643 80,588 80,000 73,448 73,582 300,000 60,000 200,000 40,000 20,000 100,000 0 0 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 28.06.2017 13 ANNUAL / QUALITY REPORT • In summer 2017 The Hirslanden Private Hospital Group is publishing its annual comprehensive quality report for the eighth time • This underlines our desire for transparency and quality leadership • Hirslanden sees quality management as a relevant element of the corporate strategy and deliberately faces up to discussions on quality • Hirslanden consistently uses result indicators for continuous improvement processes at the hospitals 28.06.2017 14 QUALITY AT HIRSLANDEN EXCELLENCE Business Excellence EFQM Management quality ISO + Process quality ISO Product quality KISS, CIRS, IQIP, Picker EVOLUTION KISS Hospital Infection Surveillance System IQIP International Quality Indicator Project ISO International Organization for Standardization CIRS Critical Incident Reporting System Picker Patient Satisfaction Survey EFQM European Foundation of Quality Management 28.06.2017 15 II. THE SWISS PUBLIC HEALTHCARE SYSTEM 28.06.2017 16 THE SWISS PUBLIC HEALTH SECTOR NUMBERS, DATA, FACTS • Third place for health expenditure in OECD countries (GDP per capita in US$, PPP). • Long hospital stays in acute hospitals • High density of doctors and nursing staff. • High quality output: • No waiting lists • One of the highest life expectancies anywhere in the world1 • Second place out of 191 countries for "overall goal attainment" according to the WHO2 • 7th place out of 139 countries in the parameter "Health/Primary Education" in the WEF World Competitiveness Report 2010/11. • However, in-depth transparency with regard to the quality of the medical services Source: OECD Health Data 2010 (Original 2008), except: 1: WHO Health Report 2000 (data 1997). 2: World Economic Forum: The Global Competitiveness Report 2010–2011 28.06.2017 17 IMPORTANCE OF PRIVATE HOSPITALS • About 40% of all Swiss hospitals are private • Around one fifth of all hospital services are provided by private hospitals • In various cantons private hospitals are essential for basic care • Private hospitals generate over CHF 4.8 billion turnover per annum • About 30 000 people work in private hospitals • According to a survey (Omnibus) 85% of respondents think that the Swiss healthcare system needs a mixture of public AND private hospitals Data: 2014; Source: Swiss Federal Statistical Office (FS), Federal Office of Public Health (FOPH), Swiss Private Hospitals. 28.06.2017 18 SWISS HOSPITAL MARKET 1/2 Beds Operating theatres Staff (HC) Total: 37,636 Total: 986 Total: 191,000 4% 9% 4% 11% 20% HIRSLANDEN 18% HIRSLANDEN HIRSLANDEN 19% of private hospitals 33% of private hospitals 30% of private hospitals 4% of total market 9% of total market 4% of total market 76% 73% 85% Hirslanden Other private hospitals Source: Verbund Privatkliniken Schweiz: Bericht Privatkliniken Schweiz 2016; Key Figures 2014 Public hospitals 28.06.2017 19 SWISS HOSPITAL MARKET 2/2 Patient days Inpatients Births Total: 12,700,000 Total: 1,376,018 Total: 85,287 4% 7% 7% 13% 16% HIRSLANDEN 13% HIRSLANDEN HIRSLANDEN 17% of private hospitals 34% of private hospitals 37% of private hospitals 4% of total market 7% of total market 7% of total market 80% 80% 80% Hirslanden Other private hospitals Source: Verbund Privatkliniken Schweiz: Bericht Privatkliniken Schweiz 2016; Key Figures 2014 Public hospitals 28.06.2017 20 HOSPITAL FINANCING Equality of the public and private More competition and national Planning for demand on the service providers domestic hospital market basis of profitability and quality (regional planning to include all potential service providers) But: distortion of competition due to But: neither price comparisons on the But: due to their multiple roles, cantons collision of interests in the cantons. basis of DRG nor across-the-board still wrongly stimulated to prefer their quality criteria will be available from own hospitals. 2012. But: different payments by the cantons to cover the social economy services makes price transparency impossible. 28.06.2017 21 III. HIRSLANDEN’S FIELDS OF COMPETENCE 28.06.2017 22 HOSPITALS • System provider: all integral medical services are always available for patients • First-class medical quality • A network of specialised institutes and centres • Technology leadership • Competent care in pleasant surroundings • Each hospital has its own character • Highly qualified medical specialists with many years experience 28.06.2017 23 MEDICAL DISCIPLINES Orthopaedic surgery/Sports medicine Heart and thoracic vascular surgery Gynaecology/Obstetrics Angiology/Vascular surgery Surgery/Visceral surgery Oncology/Haematology Cardiology Otorhinolaryngologie (ORL) Internal medicine Hand surgery Neurosurgery Plastic surgery Urology Gastroenterology 28.06.2017 24 VERY LATEST TECHNOLOGICAL STANDARD Infrastructure Labour suites 23 Beds intensive care unit 71 Medical technology infrastructure MRI (magnetic resonance tomography) 24 CT (computed tomography) 14 Cardiac catheter laboratory 17 Nuclear medicine 5 LINAC (linear accelerator, incl. CyberKnife) 6 Surgical robot 5 Dialyse units 64 Key Figures as of: 31 March 2017 28.06.2017 25 INTEGRATION OF TECHNOLOGY Example: Comprehensive Cancer Centre Integration of technology and competence to achieve the highest possible patient benefit Oncology Surgery Patient orientation instead of department orientation Psychology Radiotherapy Radiology 28.06.2017 26 FURTHER SERVICES CHECK-UP CENTRES 28.06.2017 27 IV. HIRSLANDEN'S COMMUNITY INVOLVEMENT 28.06.2017 28 HIRSLANDEN'S COMMUNITY INVOLVEMENT The Hirslanden Private Hospital Group pledges long-term involvement in society and politics as a socially responsible partner and works closely and long-term with various interest groups and institutions. Education Medical Partner Health Organisations Culture Other 28.06.2017 29 INVOLVEMENT: EDUCATION Hirslanden employs around 730 trainees and students from 30 professions with a high level of education: Swiss Federal Certificate of Competence, professional college, University of Applied Sciences and post-graduate studies. About 600 trainees and students come from health professions, including around 110 medical assistents who undergo part of their post-graduate training at one of Hirslanden’s hospitals.