Georgia Healthcare Group PLC Annual Report 2018 Strategic Report Our business model A fully integrated care pathway Our well-established network of hospitals and clinics allows a seamless patient treatment pathway from local doctors to multi-profile hospitals and pharmacies, while the medical insurance business plays a feeder role in originating and directing patients. We operate a highly-integrated business model, where clinics are Our pharmacy and distribution business solidifies our strategic goal of often the first point of interaction for attracting patients. The patientshaving a strong presence across the healthcare ecosystem. Its strong who come to our clinics can be referred to our hospitals for treatment customer loyalty programme helps us to grow our polyclinic business or to our pharmacies to fill their prescriptions. In the healthcare by driving additional referrals. In 2018, we also introduced services business, our clinics and hospitals are organised in specific ePrescriptions in our pharmacies and polyclinics, driving traffic geographical clusters to provide services to the broadest range of from our polyclinics to GHG pharmacies, 21 of which are located patients through: within our healthcare facilities. •polyclinics – offering outpatient services; •community clinics – offering broader outpatient services and Our medical insurance business also plays a feeder role in originating limited range of inpatient healthcare services; and and directing patient traffic to our healthcare facilities. The customers •referral hospitals – offering a comprehensive range of complex insured by us may also use the services of competitor healthcare inpatient and specialist services. facilities. However, we are pleased to see so many patients go for the high-quality services in our outpatient network polyclinics despite The referral hierarchy within each geographical cluster provides having a free choice of providers. The convenience of directly-settled patients with a complete and convenient treatment pathway, from claims and co-payment incentives is another reason why our insurance local physicians in polyclinics and community clinics to referral customers prefer to use GHG’s hospitals and polyclinics. Our clinics hospitals. Our 44 specialist ambulances help achieve this by facilitatingare directly paid by our medical insurance business while patients the movement of patients to and between our hospitals. While we must pay for and seek reimbursement for most medical care provided provide basic (“primary”) medical and surgical procedures at all our by other healthcare providers. facilities, the majority of more specialised or advanced (“secondary” and “tertiary”) interventional and surgical procedures are concentratedOur pharmacy and distribution and medical insurance businesses are at our regional referral hospitals. becoming increasingly synergistic through cross-sales, consolidated discounts and an increasing claims retention ratio within the Group. Customer pathway Polyclincs Customer Community clinics Referral hospitals Pharmacy Ambulance 10