RISK AREAS
The main risk areas for the operations of the Fresenius Group are as follows:
General economic risks
At present, the development of the global economy exhibits
no significant risk to the Fresenius Group. Although
overall economic growth should weaken considerably in
2009, we expect growing demand for our life-saving and
life-sustaining products and services.
Risks in the general operating framework
The risk situation for each business segment depends
on the development of its markets. Therefore, political,
legal, and financial conditions are monitored and evaluated
carefully. In addition, the growing internationalization
of our markets requires us to keep abreast of country-
specific risks.
Risks in the health care sector
Risks related to changes in the health care market are of
major importance to the Fresenius Group. The main risks
are the development of new products and therapies by
competitors, the financing of health care systems, and
reimbursement in the health care sector. The latter applies
especially in the United States, where a large portion of
our sales are generated, and where e. g. changes in the
reimbursement system could have an impact on our business.
The same applies to the hospital market in Germany,
where the DRG system (Diagnosis Related Groups)
is intended to increase the efficiency of hospitals while
reducing health care expenditure. The Company constantly
monitors further legislative developments of the DRG
system. Discussions about an ending dual financing in the
hospital sector are also being followed. Patients are largely
assigned to hospitals by the public health and pension
insurers. It is therefore especially important for the company
that the contracts between its hospitals and the
insurers and health care institutions are maintained. For
this reason, we not only continually monitor legislative
changes but proactively work with governmental health
care institutions. Generally, our aim is to counter possible
regulatory risks through enhanced performance and
cost reductions.
