. wr, (5) Aaa io aa GNA ae tat ee ep ERE) EFFECTIVE POLICIES AND PROCEDURES: HUMAN RESOURCES 20.12. 2017 fi NEXT REVIEW | HR-CB22: GROUP INCENTIVE POLICY 19. 12. 2019 CONTENTS: This policy and procedure discussed and defines the objective of the Group Incentive Scheme | as per the type of incentives, criteria, mechanism, and exclusions. (1) PURPOSES: 1.1 To ensure the consistency of the process, criteria, mechanism, and exclusions of incentive scheme in Saudi German Hospital Group. 1.2 To formulate the criteria and mechanism for calculation of the incentive entitlement to Saudi German Hospital Group. 1.3 To link the Performance Program to Group Incentive Scheme 1.4 This policy and procedure aims to set a standard incentive scheme for the group as per the agreed criteria, mechanism, and exclusion. (2) SCoPE: 2.1 Staff - Medical and Non-Medical - who meets the criteria of each incentive and approved by the Management Representatives (3) COMMON CONTROL SYSTEMS, LIMITS, MAXIMUM CEILING, AND POLICY FRAMEWORK: 3.4 The following Control measures shall apply to all incentive systems of the Group taken on an aggregate basis. 3.2 Maximum amount per year and Approval Authority. The following upper limits per year are applicable to all staff categories as given below: 3.2.1 Not to exceed 1 month’s salary: For all staff, except the specific staff category defined below in this policy. 3.2.2 Not to exceed 3 months of staff monthly salary for below category: Hospital functional | heads of Marketing, HR, procurement and IT Depts. 3.2.3 Not to exceed 4 months of staff monthly salary for below category: 3.2.3.1 Group Level position: MEAHCO key functional heads of Marketing, HR, Procurement and IT Depts. 3.2.3.2 Hospital Level position: Hospital CMO, COO, Medical Doctors and finance manager 3.2.4 Aggregate amounts paid under all incentive policies in a given year not to exceed 6 months ‘of monthly salary for the top management defined below: 3.2.4.1 Dedicated Group level position: Group CEO, CEO-CFO Corporate office and Group investor relation 3.2.4.2 Hospital level position: Hospital CEO MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY Page 1 of 9 EEa, (4) nal Yo tia ADIGE ‘Eas eatiare Conary EARCO) A Sod aa 3.2.5 Approval Authority : 3.2.5.1 Staff incentives with cap of 4 months and below, if yearly incentive exceeds the upper limit by less than 10%, specific CEO approval will be required. | 3.2.5.2 If yearly incentive exceeds cap by 10%-20%, Group CEO's approval will be required. 3.2.5.3 IF yearly incentive exceeds cap above of 20%, Group President's approval will be required 3.2.5.4 Payment of any incentive scheme should be processed collectively by the end of the month. 3.2.5.5 Any one time incentive payment to any staff that exceeds one month’s salary of that staff should be done only with the approval of the MEAHCO CEO. 3.2.5.6 For MEAHCO level positions: (up to 20%, MEAHCO CEO, and above that President) 3.2.5.6.1 For MEAHCO CEO and Corporate office positions: Group President. 3.2.5.6.2 The upper limits and approval authority for MOH collection incentives as per the policy approved by President and any other reward approved by President. 3.3 All types of bonus or incentive shall be acknowledged by the Hospital HR Managers in order to verify the compliance with the policy and SGH system. 3.4 As much as feasible, the incentive processing should be through automated system, 3.5 The Quarterly incentives should not at any given quarter exceed 5% of the net profit of the business unit per annum. Proportional adjustment in the incentive amount to be applied if required. (4) STATEMENTS: 4,1 Incentive for Chief of Medical Specialty: 4.1.1 Medical Department Heads: Saudi German Hospital medical scope of work is currently consisting of twenty three (23) medical specialties “Appendix A” -in addition to CNO and QPS in each major specialty either head of the department or consultant from one of the ‘SGH hospital is selected as the group CMO in consultation with CEOs and the chairman of medical committee who will be responsible for the technical oversight of the specialty group wise. 4.1.2 Calculation 4.1.2.1 Medical Specialties: Incentive are based on two dimensions, total of 100 points 4.1.2.2 Seventy five (75) points will go to the financial performance based on the financial performance of the concerned department in each SGH Hospital in quarterly basis. 4.1.2.2.1 Average of the hospitals financial performance against approved budget will be taken, 4.1.2.2.2 For instance, if the assign specialty within the group comprise of five (5) hospitals and each has got 70%, 80%, 75%, 70% and 90% respectively, so the average will be 78%, multiplied by total points of 75 to have 58.5 point. MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY Page 20f9 _(Sy) dat ie Ba ties aE eee omy ECO) AAD gpl) at 4.1.2.3 Twenty five (25) points is allotted for quality and administrative performance of the Chief, as the second dimension. it will include quality and MOH licensing, staffing, equipment, scientific activity, punctuality and communication. 4.1.2.3.1 Average of the hospital administrative performance will be taken. 4.1.2.3.2 For instance, if the assign specialty within the group comprise of five hospitals and each has got 70%, 80%, 75%, 70% and 90% respectively, so the average will be 78%, multiplied by total points of 25 to have 19.5 point 4.1.2.4 Each point is equal of 50 SR, and 100 point is 5000 SR per month 4.1.2.5 Incentive amount will be calculated automatically though a system based on specified criteria 4.1.2.6 Policy will be reviewed yearly for any modification required. 4.2 Quarterly Performance Bonus 4.2.1 The bonus is eligible to the function facilitators after one year of service. 4.2.2 Quarter bonus is fully automated system and processing is centralized. The approved processing details are part of the IT Department documentation on the incentive program. 4.2.3 Online access for departmental appraisal by the Hospital CEO and the employee appraisal by the Department Heads is available to individual hospitals using the 5 criteria in the online. 4.2.4 Incentive is based on the actual Net Revenue figures as per the Quarterly Financial Report prepared by the Hospitals in comparison to the approved budget and after review by the Corporate Office. 4.2.5 Incentive criteria and cut-off happens at different levels. At the hospital Level: Ifthe hospital achieves the budgeted Net Revenue, it gets a score of 70. For every 1% increase in performance from the budget, a hospital gets 3 points increase in the Revenue Score. For every 1% reduction in performance from the budget, 3 points will be reduced from the Revenue Score. 4.2.6 If the hospital performs less than 10% of the budget, the hospital is not eligible for incentive, however if any revenue departments achieve the requisite revenue points they will be eligible for incentive, 4.2.7 Department incentive score is a combination of the Department Revenue Score and Department Score by the hospital CEO. 4.2.8 If the department achieves its approved budget, it gets a revenue score of 70. For every 1% increase in performance from the budget, Department gets 3 points increase in the revenue score, For every 1% reduction in the performance from the budget, 3 points will be reduced from the revenue score. 4.2.9 Hospital CEO assess the department on criteria mentioned in the online Incentive Assessment Sheet and the maximum appraisal score is 30. 4.2.10 Departments getting a combined score (Revenue and Assessment Score) of 70 or more are eligible for incentive. 4.2.11 The Department Heads will appraise the individual employees using the online Incentive Assessment Sheet based on criteria specified. The maximum appraisal score is 50. The revenue score for employees is automatically taken from the system. The maximum revenue score is 70 for employees of revenue generating departments and 50 in case of employees of non-revenue Score of their departments. All employees of the revenue departments will get the revenue Score of their department. Individual doctors with revenue target will get the revenue score based on their own financial performance against the budget. All other employees will get the overall hospital revenue score. MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY Page 3 of 9 ~~»(Sr) Gaal She aS yd Ae eee 4.6.2 Normal 46.21 46.32 4633 463.4 4635 46.3.6 Insurance & Direct Accounts Collection: Distribution Eligibility Cee Billing Officer Medical Auditors Billing Supervisor |AR Manager Rejection Officer fies Finance Manager Chief Accountant AR Accountant (ears CEO) coo mo. en 4.6.3 Legal Affairs Collection Incentive 4.6.3.1 * ibe required (who will /e 0500 case Compensation for the exhausting efforts of Legal Affairs for collecting the group debts. 5% 0500 account debts whatever the due date. 5% for the companies and princess debts due 2 years ago and2.5 for debts due a year ago. Distribution (First): 4.6.3.5.1 2% for the main employee who achieved the case tll collection. 4.6.3.5.2 1% for other liaison officers at the hospital 4.6.3.5.3 1% for the rest of LAD staff including debt head 4.6.3.5.4 1% for the group LAD Director. 4.6.3.5.5 fo liaison, 1% shall be distributed to the staff pursuant to their percentage 46.35.6 Other person's/department's cooperation with LAD, 1% deducted of LAD share shall be granted. Distribution (Second): 4.6.3.6.1 Commission for the cases referred from one hospital 4.6.3.6.2 1.5% for the LAD Staff of the hospital referring the case 4.6.3.6.3 2% for the LAD Staff of the hospital 4.6.3.6.4 5% for the LAD Directorate staff for monitoring and coordination 46.3.6.5 1% for group legal affairs director. MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY Page 7 of 9 aQQ, (So) nad ea Add Malet RED 4.7 Performance Award 4.7.1 On-the-Spot Cash Incentive | 4.7.1.1 ASR 100 for each selected On-the-Spot Awardees per month for 10 staff in different category. 4.7.1.2. HR Representative, together with a Management Representative will do rounds in the hospital and select On-the-Spot Awardees. 4.7.2. Employee of the Month 4.7.2.1 ASR 250 for 5 staff selected as Employee of the Month. These staff shall compose of Admin, Nurses, Medical, Allied Health, and Saudi 4.7.2.2 Staff shall be nominated by Department Head, and Steering Members shall select the Best Five employees in each category mentioned. 4.7.3 Outpatient & PC Nursing and front line staff Incentive 4.7.3.1 Nursing Department will have SR 0 .50 (50 Halala) for each OPD Cash Patient to be distributed among the nursing and front line staff to increase the focus on having a better service to cash patient. 4.7.3.2. Marketing Department will have SR 100 against each patient referred by marketing staff who works with Red Crescent 4.7.4 Incentive on Admission 4.7.4.1 {f the bill of cash patient reached the following, doctor shall take a certain incentive maximum ceiling of SR 300: 4.7.4.1. Up to SR 10,000 Incentive shall be SR 100 4.7.4.1.2 Up to SR 20,000 Incentive shall be SR 200 4.7.4.1.3 More than SR 20,000 Incentive shall be SR 300 4.7.42 Admission Department: SR 20 to be paid to admission staff against each cash patient admitted over the set daily target. 4.8 Package Deal 4.8.1 Doctor will receive 20% from the extra amount of the package deal. 4.8.2 Incentive will be forfeited for certain package deal cases, which is hospital loss at the end of the bill. 4.8.3 All cost of any complication resulting from the operation and re-visit is not included in the package deal cost. 4.8.4 All package deal amount should be paid before admission. 4.8.5 Procedures: 4.8.5.1 Admission and CEO are officially allowed to approve the 20%. 4.8.5.2 Finance department will issue cheque with the mount that exceed SOO0SR. 4.8.5.3 For extra fee, internal doctor will write the extra fee amount in PD form. MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY Page 8 of 9 aSe, (54) a fe a gtd ie a eat apy PEED) iytood Management will approve the 50% of that extra amount. 4.8.5.4 Procedure/s will not be included in the package deal list prices will not be entitled for incentive. 4.8.5.5 Original approved package deal for by CEO and admission manager should be attached with the patient's bill (5) RESPONSIBILITY: 5.1 the standardization and implementation of this policy. 52 Program based on the given criteria, 53 incentive on a regular basis. SIGNATORIES FOR THE PURPOSE OF POLICIES AND PROCEDURES Prepared by: HR Department of each Business Unit ~ HR Department of each business unit shall ensure Process Owner of each Incentive Program — Shall implement and execute the Incentive Finance Department of each Business Units ~ Shall monitor the cash inventory of each Name: Mr. Wael Abou Shady Signature: Designation: Corporate HR Date: Approved by: Name: Mr. Bander Abudawood | uw aa | Designation: MEAHCO HR Director Date: w- ott Name: Dr. Mamoun Al Najjar Signature: Designation: MEAHCO CEO Date: w-0- MEAHCO HR Group Policy ~ 2017 Edition: GROUP INCENTIVE POLICY ~~ Page 9 of 9