About Medi-Clinic

Vision Values The Medi-Clinic Group What we do History / Origins Management team Our staff

Medi-Clinic Online Partners / Subsidiaries / Alliances COHSASA Medical Innovations / Medical HR / MTI Technical maintenance programme Investor area Outlook for the future

Vision

Core Ideology
Core Values	Core Purpose
Client Orientation Team Approach Mutual Trust and Respect Performance Driven	To enhance the quality of life of patients by providing comprehensive, high quality hospital services.
Envisioned Future
Aspiration	Vivid Descriptions
To be regarded as the most respected and trusted provider of hospital services by patients, doctors and funders of healthcare.	We will focus relentlessly on the needs of our clients Every hospital will be the preferred service provider in the community it serves We will provide the most cost-effective quality care possible We will maintain a contented workforce

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Values

We, the members of Medi-Clinic Limited, support the following core values:

Client Orientation

In our behaviour we...

• reflect the image of the company
• deliver the right service in the right place on the right time
• regard everyone who is dependent on our outputs as our client
• determine and meet the expectations of our clients
• measure our clients’ satisfaction regularly
• respect our clients’ right to confidentiality
• personally accept responsibility for client service

Team Approach

In our behaviour we...

• promote positive team behaviour
• ensure the participation of all role players in problem solving
• set common goals
• exhibit responsible, fair, honest and effective leadership and followership

Mutual trust and respect

In our behaviour we...

• share information to the benefit of the company
• listen with empathy
• communicate openly and honestly
• exhibit respect for the individual's dignity
• respect personal and company property
• solve problems on a win-win basis
• greet and acknowledge one another
• maintain an ethical standard

Performance Driven

In our behaviour we...

• set objectives and give regular performance feedback
• ensure that each individual knows what the standards are and what is expected
• give recognition to whom it is due
• offer each the opportunity to develop to his/her full potential
• eliminate activities that do not add value
• promote continuous improvement in productivity
• base all appointments and promotions on competence and performance
• accept mentorship as a management task

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The Medi-Clinic Group

• is an established leader in the private hospital industry in South Africa, commanding a market share of some 23%
• has nearly 6 400 beds in our network and 12 000 full-time employees servicing more than 50 hospitals countrywide and in Namibia
• meets international standards and is technologically advanced
• creates and provides the ideal environment for effective healthcare
• provides consulting rooms for doctors in private practice and a one-stop service for patients

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What we do

Our core business is to provide patients with cost-effective healthcare. We do this by

• offering a wide range of specialised services
• ensuring that medical practitioners are provided with the best possible infrastructure in the form of custom-designed facilities, state-of-the-art equipment and above all, excellent nursing care
• focusing on the needs and satisfaction levels of our patients
• creating and maintaining a motivated, dedicated and loyal staff corps

Through a continuous process of expansion, upgrading and training, we are constantly improving our standards and equipping our personnel with the skills and facilities to support our doctors and to ensure the peace of mind of our patients.

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History/Origins

• Medi-Clinic was founded in 1983 when our Chairman, Dr Edwin Hertzog, was commissioned by the Rembrandt Group to undertake a feasibility study on private hospitals.
• Dr Hertzog’s research was so conclusive that the Rembrandt Group decided to support the development of Panorama Medi-Clinic, which today remains our flagship hospital in the Western Cape.
• At the same time, Medi-Clinic purchased Leeuwendal and Medipark, two small private hospitals in Cape Town. This was soon followed by the acquisition of the then largest private hospital in the country, the Sandton Clinic.
• In 1986, Medi-Clinic, boasting 4 hospitals with 691 beds, listed on the JSE Limited. A further 3 hospitals with 688 beds were in the process of being built.
• A period of steady growth led to a significant breakthrough in 1995 when the takeover of MediCor Group added another 1100 beds to the Medi-Clinic stable. Thereafter the Hydromed and Hospiplan Groups were acquired.
• In December 2002 Medi-Clinic expanded our network of hospitals further by the acquisition of the Curamed group of private hospitals in Pretoria, in association with the black empowerment group Mvelaphanda.
• In 2005 Medi-Clinic also acquired a 49.9% interest in Wits Donald Gordon Medical Centre (Johannesburg) as well as 100% in Legae Private Hospital (Mabopane).
• In 2005 Medi-Clinic’s black ownership initiative and capital restructuring was successfully concluded, which included the establishment of the Mpilo Trust, which subscribed for approximately 4% of Medi-Clinic’s issued shares, for the benefit of almost 11 000 participating employees, including nursing, support and administrative personnel.
• In 2006 the group acquired a 51% interest in the Protector Group, consisting of the Medivaal Hospital in Vanderbijlpark, Kathu Private Hospital in Kathu, Marapong Private Hospital in Lepalale and Kingsley Medicentre in Pretoria, which was closed due to financial inefficiencies.
• In March 2007 the group’s international operations expanded to Dubai in the United Arab Emirates with the acquisition of a 50% plus 1 share in Emirates Healthcare Holdings Ltd which owns and operates 1 hospital and 5 clinics in Dubai, with the 210 bed City Hospital under construction.
• In October 2007 Medi-Clinic’s international operations expanded further with the acquisition of a 100% interest in Hirslanden, the leading private hospital group in Switzerland, which operates 13 private acute care facilities.

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Management Team

• Chairman: Dr Edwin de la H Hertzog
• Managing Director: Mr Louis Alberts
• A board of divisional directors

The management approach is to run the hospitals on a decentralised basis.

Head Office is responsible for

• co-ordination and planning
• providing the hospitals with specialised services such as:

• Clinical Services
• Central Purchasing
• Emergency Medicine
• Financial
• Head Office Support
• Human Resources
• Industrial Relations
• Information Technology
• Legal & Secretarial Services
• Marketing and Corporate Liaison
• Medi-Nurse / Staff
• Medi-Travel International
• Nursing
• Operations
• Funder Relations & Contracting
• Pharmacy Services
• Practice Relief
• Property
• Technical Department
• Training & Development

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Our Staff

Medi-Clinic prides itself on the calibre of staff that is attracted and retained. We believe that the level of job satisfaction of our more than 12 000 employees is directly influenced by our group values, our policy of internal and external equity and a stated commitment to the development of each individual.

To ensure sustained safe patient care, the group has made a substantial investment in training and development with its main focus on

• continuing professional development
• basic and post-basic nursing education
• business process training
• management and leadership development

For more information, contact training@mediclinic.co.za

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Medi-Clinic Online

Doctor Search Facility

In order to expand our service to patients and doctors, Medi-Clinic launched the Doctor Search Facility on our website in 2000. This provides prospective patients, as well as healthcare providers, with ready access to accurate, comprehensive information regarding medical practitioners practising in various areas.

The Service

• does not replace the general practitioner’s role in referring patients to specialists, but gives patients greater say in their own healthcare
• currently provides details of more than three thousand five hundred doctors countrywide and in Namibia
• represents nearly all specialist disciplines
• lists doctors’ contact details and the Medi-Clinic hospitals where they practise

Our website serves to inform patients of the extensive services offered at our network hospitals, including various specialised units, clinics, contact details and other general useful information.

To find out more about our internationally renowned hospitals and medical practitioners visit www.mediclinic.co.za

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Partners / Subsidiaries / Alliances

As a formidable role player in the private healthcare industry in South Africa, Medi-Clinic has recognised the importance of working with other organisations in order to offer a truly professional, trusted service.

The Council for Health Service Accreditation of Southern Africa (COHSASA) was established in 1995 and is a registered Section 21 company. It is the only health service accrediting body in the country that is affiliated to the International Society of Quality Assurance (ISQUA). A set of strict accreditation standards for private hospitals was laid down in 1992 by local health professionals. Today, COHSASA is the benchmark for quality care for the industry in South Africa, continually setting appropriate standards to ensure cost-effective quality patient care in respect of new developments.

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Why COHSASA accreditation for Medi-Clinic?

• It means that Medi-Clinic meets international standards with regard to patient care and hospital management
• It ensures that standards are maintained, because Medi-Clinic must undergo a stringent on-site survey by a team of health professionals every two to three years

It promotes patient care by ensuring

• an ongoing process of improvement of quality
• a focus on the patient’s rights
• a focus on the continuity and proficiency of service to patients
• proper access to care
• patient assessment
• care planning
• education of the patient and education of the patient’s family

It promotes hospital management by

• focusing on leadership
• maintaining a safe and secure environment
• ensuring infection prevention and control
• ensuring ongoing quality management processes particularly pertaining to human resources and finances

Medi-Clinic has by far the most accredited hospitals of any private hospital group in South Africa.

For more information, contact cohsasa@mediclinic.co.za

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Medical Innovations

During 1988 Medi-Clinic diversified into the field of hospital equipment, forming a company called Medical Innovations. The company designs, manufactures and supplies superior theatre tables and other quality hospital equipment.

For more information, contact medinnov@mediclinic.co.za

Medical Human Resources (Pty) Ltd

Medical Human Resources (Pty) Ltd provides temporary and permanent staff over the entire spectrum of the medical industry. The company consists of two divisions, Medi-Nurse Nursing Agency for temporary placements, and Medi-Staff for permanent and temporary administration placements.

For more information, contact medinurse@mediclinic.co.za or medistaff@mediclinic.co.za

Medi-Travel International

Medi-Travel International was established during 2002 with its head office on site at the V & A Waterfront in Cape Town. Apart from providing a range of medical services, it acts as a registered travel clinic (under the auspices of the Travel Doctor Africa group) as well as a medi-tourism office which deals with queries from international patients seeking hospital services in South Africa.

ER24

ER24 has become a wholly owned subsidiary in March 2005. ER24 has since its inception expanded into a nationwide fleet of response and ambulance vehicles and has made notable inroads into the pre-hospital services market.

For more information, contact mti@mediclinic.co.za

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Technical Maintenance Programme

Medi-Clinic’s Engineering Services Department is responsible for the maintenance of all the group’s assets. This it does by supplying a service via its head office and regional engineers, as well as having a technical team at each hospital.

A structured, planned maintenance system that is risk orientated and aimed at patient safety is used throughout the group. This service is supplied by a department that has an optimum mix of in-house staff and external subcontractors. They monitor and control standards and expenses by a computerised planned maintenance system which gives the necessary information to supply benchmarking information and ensures the correct life cycle costing of our plant and equipment.

Networking is encouraged amongst managers and all technical information is available via our intranet. Each technical department strives to provide service excellence to all its clients – patients, doctors and other staff members. Medi-Clinic is actively involved with S.A.F.H.E. (South African Federation of Hospital Engineers) and I.F.H.E. (International Federation of Hospital Engineers). These organisations provide a forum for discussion and an exchange of ideas with local and international hospitals and role players for the betterment of the hospital industry and hold biennial conferences that are attended by representatives of Medi-Clinic.

A training programme for our previously disadvantaged staff members was developed to enable them to advance through the technical ranks.

Our in-house Technical Manager’s training programme has played a major role in supplying the correct calibre of manager for our hospitals. This has made it possible to supply world-class maintenance at an affordable price and thus any hospital or group of hospitals that join us, can only gain by improving their level of maintenance and patient safety.

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Investor Area

The Medi-Clinic group ascribes its success to years of first-hand experience in the private hospital industry. The group has a proud track record of solid, steady growth, cost containment and a fairly conservative, longer-term financial view.

• Our solid financial structure, strong balance sheet and relatively low debt are of critical importance in the controlled tariff environment in which private hospitals have to function.
• Our employees and major shareholders are serious about building the business.
• We ensure better value for our patients and better value for the doctors in terms of the utilisation of their time, skills and experience.
• We have a solid record of cost containment, particularly with regard to the patient’s length of stay and pharmacy costs.
• Medi-Clinic’s black ownership initiative, Mpilo was introduced on 04 October 2005 and constitutes 15% black ownership of Medi-Clinic. The transaction involves the introduction of two strategic black partners, Phodiso Holdings Ltd and Circle Capital Ventures (Pty) Ltd, which will together acquire 11% of Medi-Clinic shares, and the formation of the Mpilo Trust, an employee share trust, that will hold a further 4%.

This proud track record was achieved through

• a strong focus on its core business. The group is thankful that, compared with its peers listed on the JSE, its operating margins have consistently been the highest. Effective operational management is a process which requires – and receives – meticulous, continuous attention
• inherent growth in the market on a macro level due to the ageing of the medical scheme population, higher patient expectations and new technology
• continuous analysis of these macro trends as well as changes in the demographic trends within the medical scheme population. This knowledge is used to improve the mix of the group’s facilities to suit the demands of the market. The focus is shifting more and more to tertiary care in accordance with modern medical trends based on international norms.
• Medi-Clinic established Medi-Clinic International in 2005 to investigate business opportunities abroad.
• Medi-Clinic recently announced that the group has acquired a 49% interest in Emirates Healthcare Holdings Limited, a Private Healthcare Group based in Dubai, United Arab Emirates.

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Outlook for the future

• The private hospital industry in South Africa has recently undergone a consolidation phase and the Competition Commission will probably not allow further major acquisitions or mergers. Numerous smaller opportunities for expansion do, however, still exist.
• By refining existing hospitals and service delivery systems, a great amount of new business can be generated while profitability margins can also be improved.
• The track record of the company illustrates that it is well positioned to contribute positively to hospital companies in other parts of the world. Good relations with some overseas groups have been established which may lead to future partnerships.
• The group values its core business and has never considered diversifying on a large scale.

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