The
Company
provides
health
care
medical
services
to
corporate
and
retail
customers,
in
which
one
performance
obligation is a promise to transfer distinct services to the beneficiary.
Med Life’s core activities
The
Company’s
core
activities
are
conducted
through
five
business
lines,
providing
a
well-balanced
business
portfolio
that
covers
all
key
segments
of
the
private
medical
services
market.
Disaggregation
of
revenue
from
contracts
with
customers
by
business
line
comprises
the
following
major
categories:
clinics,
stomatology,
hospitals,
laboratories
and
corporate.
The
Company’s
business
and
revenue
model
focuses
on
the
spending
power
of
corporations
and
private
individuals
on
medical
services,
while
the
State's
contribution
through
the
National
Health
Insurance
House
(“NHIH”)
represents
a
complement,
not
the
core
revenue
of
Med
Life’s
activities.
However,
the
National
Health
Insurance
House
is
considered
to
be
one
major
customer
that
goes
across
multiple
sectors
such
as:
clinics,
hospitals
and
laboratories,
and
from
which
the
Company
receives
the
consideration
based
on
reaching
pre-established
ceilings,
for
the
medical
services
provided
to
the
State’s
insured
patients,
which
are
the
end
users
of
the
healthcare
medical
services.
The
revenue
in
relation
with
NHIH
is
recognised
at
the
end
of
the
month,
when
the
Company
has
an
enforceable
right
to
receive
payment
for
performance
completed
up
to
date,
as
the
end
user
receives
and
consumes
the
benefits
provided
by
the
entity’s
performance as the entity performs.
Clinics
The
core
of
the
Company's
operations
is
the
network
of
ambulatory
clinics.
The
business
line
comprises
a
network
of
80
facilities,
which
offer
a
wide
range
of
outpatient
services
covering
a
broad
range
of
medical
specialties.
The
Company's
diagnostic
imaging
services
provided
to
clients
also
form
part
of
this
business
line.
The
Company's
clinics
provide
a
wide
range of services delivered mainly in two formats:
-
Hyper
clinics
,
a
format
pioneered
by
Med
Life
in
Romania,
consisting
of
large
facilities
with
at
least
20
medical
offices
and
surface
areas
in
excess
of
1,000
sqm.
It
is
a
one-stop-shop
for
clinical
examinations
and
imaging.
This
format
is
designed
for
larger
urban
areas,
with
a
population
over
175,000.
Hyper
clinics
would
usually
include
a
broad
range
of
imaging
services
on
site
including
radiology,
bone
density
–
DEXA,
CT,
MRI,
2D-4D
ultrasounds
and
Mammography;
in
the
case
of
new
openings,
such
services
may
be
included
in
the
hyper
clinics'
offering
gradually.
Hyper clinic locations also host the services of other business lines, such as sampling points for laboratories.
-
Clinics
,
offering
a
range
of
treatments
from
general
practitioner
services
to
specialists,
are
aimed
at
servicing
the
core
needs
of
the
Company's
HPP
patients
and
FFS
clients.
The
Med
Life's
clinics
typically
have
between
5
and
12
medical
offices,
although
smaller
satellite
clinics
are
in
operation
to
address
specific
market
situations.
Clinics
are
designed
for
smaller
cities
or
to
serve
specific
concentrations
of
patients.
Clinics,
with
limited
capacity
and
generally
limited imaging services, act as feeder networks for the more specialized services located in the hyper clinics.
The revenues are recognised at a point in time when the customer receives and consumes the benefits provided.
Stomatology
The
Company's
Dentistry
business
line
offers
a
full
range
of
services,
ranging
from
medical
examinations
to
surgery,
implants
or
orthodontic
services.
Stomatology
business
line
is
not
subject
to
NHIH
allocations.
All
of
the
sales
are
fee
for
service (“FFS”) based, and the revenue is recognised at a point in time, when the performance obligation is satisfied.
Laboratories
The
Laboratories
business
line
provides
the
following
range
of
services:
biochemistry,
pathological
anatomy
(cytology
and
histology),
molecular
biology
and
genetics,
haematology,
immunology,
microbiology
and
toxicology.
Sampling
points
are
locations
where
the
Company
collects
blood
and
other
samples
from
patients.
The
Laboratories
business
line
sources
the
bulk
of
its
revenue
from
FFS
clients,
and
the
revenue
is
recognised
at
a
point
in
time,
when
the
performance
obligation
is satisfied.
One
exception
is
when
the
Company
provides
laboratory
tests
to
other
companies’
employees
and
the
revenue
is
recognised
at
the
end
of
the
month,
not
immediately
after
the
laboratory
tests
are
performed,
when
the
Company
has
an
enforceable
right
to
payment
for
performance
completed
up
to
date.
From
IFRS
15
perspective,
the
revenue
is
recognised at a point in time (at the end of the month).
Hospitals
Hospital
services
provided
to
patients
are
regarded
as
a
bundle
of
services
which
comprise
medical
care,
accommodation,
meals,
use
of
equipment,
pharmacy
stock
and
nursing
services.
This
is
considered
to
be
a
single
performance
obligation
as the medical procedures cannot be performed without one of the above elements.
Revenue
is
recorded
during
the
period
in
which
the
hospital
service
is
provided
and
is
based
on
the
amounts
due
from
patients. Fees are calculated and billed based on various tariff agreements.
The
Hospitals
business
line
derives
its
revenue
predominantly
from
FFS
patients.
Treatment
of
State
insured
patients
for
the
NHIH,
generally
relates
to
maternity,
gynaecology,
cardiology
and
oncology.
The
revenues
are
recognised
at
a
point
in time, when the consumption of the benefits for the services provided is accomplished.
The
Company
does
not
expect
to
have
any
contracts
where
the
period
between
the
transfer
of
the
promised
service
to
the
patient
and
the
payment
by
the
patient
exceeds
one
year.
Consequently,
the
Company
does
not
adjust
any
of
the
transaction prices for time value of money.
Corporate
The
Corporate
business
line
offers
HPPs
(health
prevention
packages)
on
a
subscription
basis,
generally
to
corporate
clients,
as
part
of
the
benefit
packages
for
their
employees.
These
programs,
which
focus
on
prevention,
such
as
regular