Spire Healthcare Regulatory News (SPI)

Spire Healthcare Group plc

("Spire Healthcare", "the Company" or "the Group")

Re: Media coverage

27 January 2020

Following recent media coverage regarding Mr Habib Rahman and Spire Parkway Hospital, Spire Healthcare Group plc (LSE: SPI), provides the following update.

Mr Rahman is an orthopaedic consultant who had practising privileges at Spire Parkway Hospital, and who currently practices within the NHS at University Hospitals Birmingham NHS Trust ("UHB") where he is employed.

Spire Healthcare routinely audits patients' clinical outcomes and has a proactive approach to engaging with other healthcare providers to improve standards. Following an investigation into potential concerns with certain shoulder treatments carried out by Mr Rahman, Spire restricted Mr Rahman from practising in September 2018, and fully suspended him in January 2019.

During this process Spire asked the Royal College of Surgeons ("RCS") to review Mr Rahman's practice. Spire liaised closely with UHB, the CQC and GMC to inform them of the review findings and Spire's plans to inform relevant patients. Following the RCS's guidance, we wrote to all patients identified as requiring follow-up, offering a consultation with an independent surgeon to review both their care and post-operative recovery. That process is still on-going. Any claims arising as a result of this process should be met by Mr Rahman and his insurance. We do not expect the Company to have a material financial exposure to such claims.

Further background

In our sector it is common for patients who bring a claim against a consultant to also bring a claim against all other potential defendants, including the hospital where the consultant practised. We expect to defend any claims brought against the Company. However, in the event any claims against Spire are successful, they would be covered by Spire's existing indemnity arrangements, which have been significantly strengthened in recent years, and are therefore not expected to have a material financial impact on the Company.

Our commitment to investing in, and enhancing, clinical oversight and governance means there will inevitably be reviews, which are a necessary function of being a responsible healthcare business. This investigation reflects the complex challenges faced by all healthcare providers undertaking these reviews, where the issues under consideration are the exercise of clinical judgement and the management of patients over a period of care.

Our actions to alert all patients affected highlights the significance of our continued investment in oversight systems and processes, and that patient safety is of paramount importance to the Company. We have invested, and continue to invest, significantly in clinical quality and patient safety which has resulted in 83% of the Company's sites being rated 'Good' or 'Outstanding' by the CQC or equivalent, compared with 67% in 2017. The CQC upgraded its rating to 'Good' for Spire Parkway in December 2019 including an 'Outstanding' rating for Caring, demonstrating the ongoing quality improvements at the hospital.

Spire will further update the market as appropriate.

For further information please contact:

Spire HealthcareCora McCallum, Head of Investor Relations+44 (0)20 7427 9169

Instinctif PartnersGuy Scarborough

Jeremy Durrant+44 (0)20 7457 2020

Registered office and head office:

Spire Healthcare Group plc3 Dorset RiseLondonEC4Y 8EN

Registered number 9084066