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Press release from CNW Group

OPMEDIC Group Inc. comments on the impact of the reduction in rates paid to physicians for services related to medically assisted procreation services in Quebec

Thursday, December 22, 2011

OPMEDIC Group Inc. comments on the impact of the reduction in rates paid to physicians for services related to medically assisted procreation services in Quebec10:27 EST Thursday, December 22, 2011/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./MONTREAL, Dec. 22, 2011 /CNW Telbec/ - OPMEDIC Group Inc. ("OPMEDIC GROUP") (TSX: OMG), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, has taken note of the official announcement by Quebec's Minister of Health and Social Services, Dr. Yves Bolduc, that the Régie de l'assurance maladie du Québec (the "RAMQ") will reduce the rates paid to physicians who provide medically assisted procreation ("MAP") services in private clinics effective January 1, 2012.Further to the coming into force on August 5, 2010 of the Regulation respecting clinical activities related to assisted procreation and the Regulation amending the Regulation respecting the application of the Health Insurance Act (collectively, the "Regulation"), all expenses for MAP services that are covered by the Regulation are paid by the RAMQ to the attending physician. Rates include the professional services fees retained by the attending physician and the portion of the expenses for medical procedure and technical services remitted by the attending physician to the private clinic. The rates are established by the RAMQ after consultation with the FMSQ.The rates related to in vitro fertilization ("IVF") activities carried out in private clinics in Quebec that include a technical portion paid by the attending physician to the private clinic will be reduced, effective January 1, 2012, by 34%. The rates for a standard IVF cycle that includes a technical portion will be reduced from $6,975 to $4,600.  The impact of this reduction will not affect the attending physicians, who will continue to receive the same fees from the RAMQ for professional services provided in a hospital or a private clinic, but will reduce the technical portion of the expenses that were payable to the private clinic by the attending physician for all services provided by the private clinic.The rate decrease does not affect other MAP activities such as artificial inseminations and ultrasounds, the rates for which will remain unchanged.Jean-Marc Lachance, Vice-President Finance and Chief Financial Officer of the Corporation, explains that "The announced reduction in rates effective January 1, 2012, will have a negative impact on revenues and the profit margin for our IVF activities in Quebec, which could be mitigated by the ongoing growth in MAP activities. In addition, we are continuing to expand, having opened a new endoscopic centre on Montreal's South Shore in November. This situation in no way compromises the strength of our balance sheet."Detailed financial results can be accessed on the OPMEDIC GROUP web site at OPMEDIC GROUPOPMEDIC GROUP is a company incorporated under the laws of the Province of Quebec which provides healthcare-related services including surgical and endoscopic facilities and services to patients and surgeons (with its OPMEDIC division), fertility treatments, medical imaging, laboratory services and diagnostic procedures (with its PROCREA Cliniques division) and sperm banking services (with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common Shares trade on the Toronto Stock Exchange under the symbol "OMG".This news release does not constitute an offer to sell or to solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This news release contains certain forward-looking statements that reflect the current views and/or expectations of OPMEDIC GROUP with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.The content of this press release has not been approved by nor submitted to the TSX which assumes no liability therefore.  For further information: Jean-Marc LACHANCE Vice-President Finance and Chief Financial Officer (514) 345-8535, x 2260