Quarterly Statement ‐ Q1 2023

RHÖN‐KLINIKUM Aktiengesellschaft

BUSINESS PERFORMANCE

MATERIAL EVENTS AND SECTOR‐SPECIFIC ENVIRONMENT

As in the economy as a whole, the first quarter of financial year 2023 at RHÖN‐KLINIKUM AG continued to be dominated by the impact of the geopolitical risks resulting from the war in Ukraine, rising energy and commodity prices, supply chain problems and inflation.

By introducing a gas and electricity price brake in the middle of December 2022, the German Federal Parliament (Bundestag) adopted relief payments for hospitals from financial year 2023. Given the steep hike in energy prices and hospitals' heavy reliance on natural gas, a total of € 6 billion has been earmarked for the period from 1 October 2022 to 30 April 2024.

For the university hospital Universitätsklinikum Gießen und Marburg (UKGM), an agreement was reached at the end of lengthy, marathon negotiations between the Federal State and the managers of the Group, the universities and UKGM on its entitlement to investment funding. This agreement was signed at the end of February. After RHÖN‐KLINIKUM AG already in the past had invested over

  • 750 million in the Giessen and Marburg university hospitals from own funds, the next ten years will now see further amounts totalling nearly € 850 million being invested in healthcare delivery, research and teaching. Federal state funding totalling roughly € 530 million coupled with the investment of roughly € 320 million from own funds will enable the two hospitals to keep pace with medical, technical and structural developments.

After several weeks of industrial action and intense negotiations, UKGM and the trade union Verdi on 14 April 2023 agreed on the offer made by UKGM for a key issues paper on the conclusion of a "job protection and relief collective agreement for UKGM and UKGM Service GmbH". Specifically, the key issues paper provides for relief in updating the nurse staffing levels as defined for direct patient care on all wards having their own beds as well as flexible, shift‐based staffing (nursing staff regulation (Pflegepersonalregelung PPR 2.0)) for wards and functional units. The subsequent negotiations on the final text, to be completed by 30 September 2023, are to result in the new "collective agreement for job protection and relief at UKGM" that is to apply with retroactive effect to 1 April 2023.

Many hospitals will have to close down due to the huge cost pressures and in the wake of the planned hospital reform. Coming on top of that are the massive cost hikes hospitals face for energy, medical goods and services which they cannot refinance. Many different structural changes as well as new care delivery forms and regional healthcare networks are needed to preserve the efficiency of the healthcare system.

2

TREND IN SERVICE VOLUMES

Our acute inpatient capacities are unchanged at 5,445 beds (31 December 2022: 5,445 beds). Patient numbers at our hospitals and medical care centres developed as follows:

January to March

2023

2022

Change

absolute

%

Inpatient and semi‐inpatient treatments at our

Acute hospitals

49,282

46,770

2,512

5.4

Rehabilitation hospitals and other facilities

1,308

1,116

192

17.2

Outpatient treatments at our

50,590

47,886

2,704

5.6

112,583

8,581

7.6

Acute hospitals

121,164

Medical care centres

56,435

53,852

2,583

4.8

177,599

166,435

11,164

6.7

Total

228,189

214,321

13,868

6.5

NET ASSETS POSITION AND RESULTS OF OPERATIONS

The Group's revenue and earnings performance during the first three months of 2023 compared with the same period of the previous year is as follows:

January to March

2023

2022

Change

€ m

€ m

€ m

%

Revenues

361.5

347.3

14.2

4.1

EBITDA

22.5

19.8

2.7

13.6

EBIT

6.2

2.5

3.7

148.0

EBT

6.8

1.8

5.0

277.8

Consolidated profit

6.4

1.3

5.1

392.3

Revenues rose 4.1% compared with the same period last year. EBITDA improved by 13.6% to reach € 22.5 million. Consolidated profit stood at € 6.4 million.

Despite the discontinuation of reimbursement from the German legislator related to the COVID‐19 legislation, revenues for the first three months of fiscal year 2023 increased by € 14.2 million or 4.1% to € 361.5 million on the back of a 6.5% increase in the number of inpatients and outpatients treated. During the same period of the previous year, this item still included € 21.1 million in income in connection with COVID‐19 legislation, which essentially related to income from relief payments for bed capacities kept available.

The rise in other income by € 11.2 million or 22.1% is attributable among other things to higher income from ancillary and incidental activities (€ 3.7 million) - resulting, among other things, from higher sales of drugs and cytostatics - as well as to reimbursements by the legislator from the Health Fund (Gesundheitsfonds) to compensate for higher energy costs (€ 2.8 million). Also included is an amount of € 5.0 million in reversals of liabilities from previous years recognised in the income statement.

Compared with the same period last year, materials and consumables used witnessed a rise in the first three months of 2023, disproportionate to the rise in revenues, by € 12.4 million or 11.6% due to higher purchasing prices. The cost‐of‐materials ratio climbed from 31.0% to 33.2%.

With a decline in the employee headcount, the rise in the employee benefits expense of the first three months of financial year 2023 compared with the same period of the previous year by

3

  • 6.6 million or 2.8% to € 239.1 million is attributed to general wage increases. The personnel expense ratio declined from 66.9% to 66.1%.

Other expenses increased from € 37.9 million by € 3.4 million or 9.1% to reach € 41.3 million. The increase is mainly attributable to expenditures for maintenance and servicing requirements.

Thanks to a generally positive development of interest rates, the finance result improved from ‐ € 0.8 million by € 1.4 million to + € 0.6 million.

At an unchanged rate of taxation, the income tax expense item stands nearly at the previous year's level. This is the result of a tax assessment basis that is roughly unchanged compared with the same period of the previous year.

With regard to net assets, we refer to the following overview:

31 March 2023

31 Dec. 2022

€ m

%

€ m

%

ASSETS

Non‐current assets

1,007.3

58.2

1,016.3

59.6

Current assets

722.9

41.8

688.6

40.4

1,730.2

100.0

1,704.9

100.0

EQUITY AND LIABILITIES

Shareholders' equity

1,257.6

72.7

1,251.4

73.4

Non‐current liabilities

157.3

9.1

162.4

9.5

Current liabilities

315.3

18.2

291.1

17.1

1,730.2

100.0

1,704.9

100.0

OTHER INFORMATION

Employees

On 31 March 2023, the Group of RHÖN‐KLINIKUM AG employed 18,113 persons (31 December 2022: 18,140).

Employees

31 March 2023

31 Dec. 2022

Change

absolute

%

Hospitals

15,990

16,015

‐25

‐0.2

Medical care centres

326

329

‐3

‐0.9

Service companies

1,797

1,796

1

0.1

Total

18,113

18,140

‐27

‐0.1

4

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENT

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

31 March 2023

31 Dec. 2022

€ '000

%

€ '000

%

A S S E T S

Non‐current assets

Goodwill and other intangible assets

178,191

10.3

179,319

10.5

Property, Plant and Equipment

814,799

47.1

822,495

48.3

Investment property

79

0.0

316

0.0

Investments accounted for using the equity method

544

0.0

513

0.0

Deferred tax assets

607

0.0

358

0.0

Other financial assets

13,089

0.8

13,335

0.8

1,007,309

58.2

1,016,336

59.6

Current assets

Inventories

33,862

2.0

33,318

2.0

Trade receivables

228,107

13.2

228,602

13.4

Other financial assets

344,483

19.9

332,685

19.5

Other assets

24,036

1.4

12,514

0.7

Current income tax assets

4,198

0.2

4,155

0.2

Cash and cash equivalents

88,210

5.1

77,334

4.6

722,896

41.8

688,608

40.4

1,730,205

100.0

1,704,944

100.0

31 March 2023

31 Dec. 2022

€ '000

%

€ '000

%

EQUITY AND LIABILITIES

Shareholders' equity

9.7

167,406

9.8

Issued share capital

167,406

Capital reserve

574,168

33.2

574,168

33.7

Other reserves

488,356

28.2

482,304

28.3

Treasury shares

‐76

0.0

‐76

0.0

Equity attributable to shareholders of RHÖN‐KLINIKUM AG

1,229,854

71.1

1,223,802

71.8

Non‐controlling interests in equity

27,774

1.6

27,631

1.6

1,257,628

72.7

1,251,433

73.4

Non‐current liabilities

Financial liabilities

141,700

8.2

141,675

8.3

Provisions for post‐employment benefits

588

0.0

519

0.0

Other financial liabilities

14,961

0.9

20,234

1.2

157,249

9.1

162,428

9.5

Current liabilities

Financial liabilities

8,666

0.5

7,966

0.5

Trade payables

63,113

3.6

69,986

4.1

Current income tax liabilities

9,997

0.6

11,205

0.6

Other provisions

32,827

1.9

33,964

2.0

Other financial liabilities

12,341

0.7

11,576

0.7

Other liabilities

188,384

10.9

156,386

9.2

315,328

18.2

291,083

17.1

1,730,205

100.0

1,704,944

100.0

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Rhön-Klinikum AG published this content on 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 06:46:04 UTC.