Description of activity

The basic business and major source of revenues is health resort medical treatment carried out on the basis of own medicinal water springs. Medical business is carried out in the form of a Non-Public Healthcare Facility consisting of a Health Resort Sanatorium, Institute of Natural Medicine and Health Resort Clinic. The basic treatment profile are rheumatic and traumatic as well as motor organ disorders. The Resort is one of Poland’s smallest and its share in the revenues of state owned health resort companies is estimated at approx. 0.7% (data for 2005 – 2007). The Company operates on the domestic market and the main source of revenues are contracts with the National Health Fund (NFZ). Also, the Company receives revenues from customers for full-price paid treatment as well as for rehabilitation stays. The resort’s owned natural resources include a single medicinal water intake (sulphide spring, radium-rich spring – not used today, sulphide/radium rich spring) as well as potable water springs. Treatment offer of the Company includes around 30 treatment profiles including balneotherapy and hydrotherapy, kinesytherapy, physiotherapy or cryotherapy. These are e.g. baths in a sulphide/radium-rich water (centrifuge, hydromassage, pearly baths), manual and vibration massages, mud packs and compresses, physiotherapy treatment, inhalations and light therapy as well as treatment in a rehabilitation pool.
The main assumptions for development strategy of the Company are based on diversification of revenue sources and increasing the share of therapeutic services provided for individual customers (fully-paid treatment) as well as from training and conference business (commercial utilisation of the existing conference room). The Company’s plans are to revitalize the existing green belts: building a Pump Room and restoration of resort parks including restoration of a fitness trail. Also, the existing infrastructure requires upgrading (particularly “Akacja” sanatorium). The resources of mineral waters in hand are potential sources of investment plans associated with launching a mineral water bottling plant which could be another source of revenues for the Resort. The Company operates in a market environment in which competition is getting stronger and stronger every year, mainly due to increasing customer demands, as well as due to opened new SPA centres offering athletic recovery being very popular today. As the closest (in terms of distance) competitor of Przerzeczyn Resort may also be regarded Zespół Uzdrowisk Kłodzkich (Kłodzko Health Resort Group) and Ladek- Długopole Resort. Development perspectives for the health resort market are promising, developing demographical processes as well as ageing of Poland’s population or small growth thereof, as well as increased awareness of healthy lifestyles may give rise to the assumption that centres providing such services as the ones offered by the Resort will experience increasing interest from potential customers.