Remuneration structure

Publicly and privately financed healthcare.

Capio operates under different remuneration systems across its segments. In 2015, 88% of the Group’s net sales were publicly financed, with the remaining 12% being financed under private insurance schemes or privately financed by the patients themselves and were primarily related to activities in Norway and France. In France, most privately financed remuneration is attributable to non-medical services, including single-room supplements. In Sweden, the proportion of privately financed activities was negligible.

The largest share of Capio’s remuneration, 87%, is based on payment per treatment (tariffs). Capitation is another remuneration form that, with regard to Capio, is applied in large areas of the primary care activities in Sweden. This entails that a fixed annual amount is received per patient listed at the primary care center. 13% of Capio’s remuneration was related to capitation based remuneration models in 2015.

The basis for business operations may be a licence/authorization whereby a healthcare facility has gained approval from the healthcare authorities to provide certain types of healthcare, and to receive remuneration according to a specific price list. The care provision agreement is not subject to any time limit and applies until further notice. Examples are Capio’s activities in France and Germany, as well as within primary and specialist healthcare in Sweden. In Sweden free healthcare choice schemes have been intro- duced for a number of different treatments in recent years. A trend in Europe is for the form of agreement to focus more on a free choice of healthcare, whereby the patient chooses the healthcare provider. Healthcare agreements (contracts) also occur, entailing that the care provider is required to produce a certain volume of healthcare, for a maximum price, during the term of the agreement. If this cap is exceeded, the remuneration for production above the fixed cap will be reduced.

Remuneration model