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's activity report 2022

Ida-Viru Central Hospital SA (hereinafter the hospital) continued in 2022 as its main activity the provision of medical services with the structure and locations established in previous years, but the organization of the hospital's treatment was still affected by the COVID-19 pandemic.

The COVID-19 pandemic strongly affected the provision of medical services in the first half of the year. Many medical workers fell ill and the provision of medical services was hindered. Due to the pandemic, rearrangements had to be made in the use of rooms. The negative impact of the pandemic was reflected in the underperformance of the contract with the Estonian Health Insurance Fund, renamed the Health Insurance Fund from 01.04.2023 (hereinafter in the text Estonian

Health Insurance Fund). By the end of August 2022, medical services had been provided 2.6 million euros less than agreed. After the implementation of management and work organization measures by the board and the decision to increase labor costs in the second half of the year, the volume of medical services provided increased and by the end of the year, 1 million euros of the contract volume remained unfulfilled.

The financial volume of medical services in 2022 was a total of 58 million euros (2021: 57 million euros), with the Estonian Health Insurance Fund continuing to be the hospital's main contracting partner. Due to the spread of COVID-19, several rearrangements took place in the provision of treatment services throughout the year, which limited the provision of planned services in inpatient nursing care, as treatment areas and medical workers were relocated according to the pandemic situation.

In the coming years, Ida-Viru Central Hospital plans to establish a psychiatric building, according to

the agreement concluded between the Ministry of Social Affairs, the Estonian Health Insurance Fund and Ahme Hospital.

After the completion of the aforementioned, psychiatric care will be transferred from Ahtme hospital to Ida-Viru

Central Hospital. In 2022, psychiatric services were purchased from Ahtme Hospital by subcontracting. The relevant developments are described in the functional development plan of Ida-Viru Central Hospital phase I, which was approved by the Minister of Social Affairs order no. 134 on 22.12.2020. The second stage of the functional development plan was approved by the Minister of Health and Labor order no. 137 on 4.11.2022.

In 2022, we continued the reconstruction of the G-building in Ahtme district with 75% co-financing from the European Regional Development Fund,

as a result of which the former inpatient clinic will be converted

into outpatient reception rooms of Ahtme Health House. Health examinations and procedures will also be performed in the reconstructed building, and a training center is planned for the building. The building will be put into use in the second half of 2023.

For the coverage of the hospital's own contribution to investment activities, a loan agreement has been concluded with the Nordic

Investment Bank, from which 7.5 million euros have been used. The total amount of the loan agreement is up to 15 million euros and the loan period is up to 17 years. Loan repayments start on 15.03.2023.

In 2023, it is planned to increase the loan by 3 million euros. As of the writing of the activity report, the loan amount is 9.0 million euros and negotiations with the bank continue for 1.5 million euros.

In 2022, the State Support Services Center applied a financial correction to the costs of three projects funded by the Ministry of Finance European

Regional Development Fund. The total amount of the support repayment claim was 1.2 million euros, which the hospital has repaid, but has disputed the financial correction decision in court.

In 2022, the development and implementation of the HEDA medical information system, which was started in 2018, continued. The full implementation of the updated information system is planned for 2023. An additional agreement has been concluded for the development of HEDA, which allows for the rapid resolution of state orders.