MedLife informed stakeholders on the impact of new stricter measures taken by the Romanian government on their business. 

Since the Romanian government temporarily suspended the provision of all dental medicine services but emergency ones as of 22nd March and other non-urgent hospitalizations, hospital treatments and medical investigations for a period of 14 days as of 23rd March, MedLife adapted its business accordingly. Moreover, nonessential patients’ consultations held in ambulatory units are rescheduled. All patients who are not urgent and to whom the provision of medical care in hospital units is not inevitable need to be discharged within 48 hours from the entry of the measures into the force. 

It is up to hospital management to reorganize employees’ schedule and shifts while keeping the salary unchanged. 

MedLife Management decided to undertake the following measures to lessen the financial impact:

1. Reduction of management salaries by half for 45-days period
2. Cutting the administrative costs by sending non-crucial staff into technical unemployment where Romanian government will finance 75% of the Romanian mean wage (for salaries exceeding the average, the difference is paid by the Company)
3. Cutting the working hours for essential administrative employees from 5 to 4 working days
4. Negotiation with all landowners to delay or lower the rent payments for the next period
5. Compromise with non-mandatory service providers to temporarily stop the collaboration 
6. Discussion with banks to boost the liquidity (the Company currently has enough cash for 3-6 month period)
7. Talks with investors about investments for the post coronavirus period, including the development of centers for the lung recovery treatments

According to the Management, although required social distancing and two aforementioned government actions had a direct effect on the company’s revenues, the loss in the income cannot be quantified at the moment.

MedLife’s management believes demand for medical services will follow an upward trend. Also, the Company’s management has sufficient cash at hand to go through these demanding period and is ready to take more actions if needed to overcome corona period.