Accounting Policies Adopted in Brazil (BR GAAP / Corporate Law): Accounting Policies and Principles as set forth by the Brazilian Corporate Law, CVM norms, IBRACON norms and pronouncements, and the dispositions of the ANS Account Plan approved by Normative Resolution 136.
Adjusted EBITDA: Adjusted EBITDA corresponds to EBITDA plus related non-recurring expenses, mainly: (i) professional fees in connection with past acquisitions; (ii) costs related to the acquisition and integration of companies; and (iii) tax refinancing that affects the net income of each respective period.
Amil Assistência Médica: Amil Assistência Médica Internacional S.A.
ANS: Brazilian National Health Agency. ANS is the Brazilian regulatory agency for the private healthcare sector.
ANS Accounting Plan: Accounting Plan as set forth by ANS, currently disciplined by Normative Resolution n.º 28, of April 1, 2003, mandatorily adopted by healthcare operators.
ANVISA: Brazilian National Sanitary Surveillance Agency.
Arbitration Chamber: Market Arbitration Chamber established by the BM&FBovespa for resolution of disputes between companies and its investors.
Arbitration Rules: Regulation used in the Arbitration Chamber.
ASOs: Administrative Service Only plans.
BACEN or Central Bank: Brazil´s Central Bank, equivalent to the US’s Federal Reserve.
Blue Life: Assistência Médica São Paulo S. A. and PSI - Planos de Saúde Integrais S.A., healthcare operators.
BM&FBovespa: Securities, Commodities and Futures Exchange.
Brazilian Corporate Law: Law n.º 6404 of December 15, 1976 and posterior alterations.
CADE: Administrative Council of Economic Defense.
CAGR: Compound Annual Growth Rate.
CDI: Interest rate charged upon bank-to-bank loans. Is the Brazilian equivalent to the LIBOR rate.
CDPI: Clínica de Diagnóstico por Imagem Ltda.
Cigna: Cigna Healthcare, an American healthcare operator.
COFINS: Contribution for Social Security Financing.
Company or Amilpar: Amil Participações S.A. Contracted Provider Network: Network of contracted providers, including physicians, outpatient facilities, multi-specialty clinics, laboratories, diagnostic imaging centers, hospitals, maternity wards and emergency rooms, located throughout the entire Brazilian territory, through which the Company grants healthcare services to its members.
Contracted Provider Network: Network of contracted providers, including physicians, outpatient facilities, multi‑specialty clinics, laboratories, diagnostic imaging centers, hospitals, maternity wards and emergency rooms, located throughout the entire Brazilian territory, through which the Company grants healthcare services to its members.
CSLL: Social Contribution Tax on Net Income.
CVM: Brazilian Securities and Exchange Commission.
Dental MCOs: Healthcare operators that offer exclusively dental plans.
Dental Plan: Exclusive Dental Healthplan offered by dental care cooperatives and managed dental coverage companies.
Diagnostic Imaging Center: Place where several imaging exams are done, such as: radiology, MRI, tomography, angiography, etc.
Dollar, US$: Official currency of the United States of America.
Emergency: Situations of immediate risk or irreparable injuries to a patient’s life, according to a physician.
ESHO: ESHO Empresa de Serviços Hospitalares S.A.
Free choice healthcare plans: Healthcare plan in which the beneficiary is allowed to use medical services offered by professionals and/or providers outside the Service Network stipulated by the plan, and soliciting from the Company a limited reimbursement, that is predetermined by the costs which are incurred.
GDP: Gross Domestic Product.
Healthcare Benefit Plan: Private healthcare benefit plans, according to the law in force and ANS regulation, including dental plans and inpatient and outpatient benefit plans.
Healthcare Insurance Companies: Insurance companies that are authorized to operate Healthcare Benefit Plans, as long as they are constituted as insurance companies specialized in this insurance modality.
Healthplans: Private healthplans, according to the definition in the law in force and to ANS regulation, including dental plans and inpatient and outpatient plans.
IBGE: Brazilian Institute of Geography and Statistics.
Ibovespa: Securities, Commodities and Futures Exchange Index which measures the stock price variation from the most traded companies at BM&FBovespa.
IBNR: Provision for Incurred but Not Reported events.
ICU: Intensive Care Unit.
IFRS: International Financial Reporting Standards.
IGP-M: General Price Index - Market.
Individual Plans: A healthcare benefit plan contracted by an individual with an inpatient and outpatient healthplan for healthcare coverage to the plan bearer (individual) or him/ herself and his/her dependents (family).
Inpatient and Outpatient Healthplans: Healthplans that provide inpatient and outpatient benefit plans, classified by the ANS as (i) ASO providers; (ii) medical cooperatives, (iii) philanthropic institutions; (iv) self-funded plan administrators (ASO); (v) healthcare insurance companies; and (vi) managed care companies, which exclude dental plans.
IPCA: Nationwide Consumer Price Index, released by the IBGE.
IRPJ: Corporation income tax.
Managed Care Organization (MCO): Modality of healthplan constituted by for-profit companies that do not suit ANS regulation as administrators, medical cooperatives, self managers or philanthropic institutions, with their own and/or contracted network or upon reimbursement coverage.
Medical Audit: Process that verifies the technical relevance of medical necessity and the use of resources in medical procedures. The audit also evaluates and analyses the technical, contractual, and legal relevance of the claims submitted by the contracted providers of service, reviewing the provider’s financial and technical efficiency.
Medical Loss Ratio (MLR): The percentage of medical costs (medical losses) incurred while providing services to members, divided by the Healthcare Plan Premiums.
Member: An individual that joined a healthcare plan though an individual plan or through a corporation that offers healthcare coverage to its related individuals.
Membership: Beneficiaries of healthcare benefit plans provided by healthplans, including the Company.
Medicard: Med Card Saúde Ltda., healthcare operator.
Outpatient Facilities: Amilpar’s own network facilities that provide outpatient services to members, covering high-demand clinical specialties, offering tests and low complexity procedures in loco.
Own Network: All hospital, outpatient, diagnostic, and therapeutic facilities managed by the Company.
PIS: Social Integration Program Tax.
Private Healthcare Coverage Providers: Healthcare operators that offer healthcare benefit plans, classified by the ANS as: (i) ASO providers; (ii) medical cooperatives; (iii) philanthropic institutions; (iv) self-managed private healthcare coverage providers (including self-sponsored corporate healthcare plans), or self-insurers; (v) health insurance providers; and (vi) MCOs.
Private Healthcare Plans Law: Law n.º 9656, of June 3, 1998, and posterior alterations.
Premiums: The amount paid monthly by the Client (member or corporation) to the Company or its subsidiaries, in his/her own favor and/or his/her dependants, if a member, or in favor of its own employees’ and dependants’ favor, if a corporation, to obtain healthcare coverage.
Preventive Medicine: Set of initiatives and proceedings that aim at health promotion, early prevention, the detection of diseases, and the rehabilitation of patient carriers of disease or sequels.
Public Healthcare Service: Healthcare services provided by public entities.
RDC 77: ANS Resolution n.º 77, of July 17, 2001, that determines the criteria for healthcare operators’ provisions.
Real, Reais or R$: Brazilian currency.
Reference Network Plan or PPO: Healthcare benefit plan that uses a predefined contracted network.
Service Network: Contracted and own network, considered together.
SELIC: The average interest rate on daily financing, based on federal bonds.
SEMIC: Semic Serviços Médicos Indústria e Comércio Ltda., healthcare operator.
SUS: Sistema Único de Saúde (Brazilian Public Health System).
TJLP: Long term interest rate.
Urgency: Cases resulting from personal accidents, understood as such, or from pregnancy complications, such as personal accidents or pathologic changes during pregnancy as, for example, ectopic pregnancy, eclampsia, premature birth, diabetes and abortion.
U.S. dollar, U.S. dollars or US$: refers to U.S. dollars.
U.S. GAAP: US generally accepted accounting policies.