Changed payment patterns within Extended Care’s American wound care operations
The content and presentation of invoicing within Extended Care’s American wound care operations are based on interpretations of complex rules and regulations containing special instructions for the charging of services (rental products) rendered to healthcare authorities and payers (Medicare, Medicaid and so forth). During the third quarter of the current year, it came to light that Extended Care’s interpretation of the rules and regulations deviates from the payers’ interpretations in certain respects. A thorough analysis has been performed in order to quantify the effects on earnings within the American wound care operations. As a result of this analysis, consolidated profit deriving from Extended Care will be charged a total of SEK 28 million for the impairment of accounts receivable during the third quarter of 2006. The impairments derive from the 2003, 2004 and 2005 invoicing years.
The resulting costs are of a nonrecurring nature and are not expected to significantly affect prospects for the current year.
For further information:
Ulf Grunander, Chief Financial Officer
Getinge AB (publ)
Ekebergsvägen 26, Box 69
310 44 Getinge, Sweden
Tel: +46 35 15 55 00