Corporate profile

Hapvida Participações e Investimentos S.A. is a holding company organized as a corporation, domiciled in Brazil and headquartered at Av. Heráclito Graça, nº 406, in the city of Fortaleza, state of Ceará. The Company obtained its public company registration on April 20, 2018, and began trading its shares on the Novo Mercado B3 – Brasil, Bolsa, Balcão special segment on April 25, 2018, under the ticker HAPV3.

Founded in 1979, initially as a clinic, the Company’s main activities are: (i) the sale of health insurance plans covering medical care costs, with most services provided through its own clinical, outpatient, and hospital networks; and (ii) the sale of dental plans with services provided through a credentialed network.

Over the years, the Company has made several acquisitions and, in 2022, completed a business combination with Notredame Intermédica (GNDI). At the time of the business combination, both companies already had a long history in medical care and were established as national references, always striving to promote the best in medicine in an accessible manner. The business combination brought together companies with geographic complementarities and a wide range of products, hospital structures, and health solutions.

Healthcare industry

Hapvida operates in the supplementary health sector and directs its strategy towards providing services in a verticalized manner, where care for beneficiaries is primarily provided through its own network, aiming to offer quality and low-cost medical and dental care. The Company operates in a single operational segment, with operational and financial results regularly reviewed in aggregate by the Board of Directors, which guides decision-making.

The Company believes that the verticalized and integrated business model is a significant differentiator for its services. The existence of its own care units allows for integrated management focused on customer needs, with best practice protocols aligned with international standards. Technology is used to align data and information between the operator and the care network, as well as for intelligence in the continuous improvement of cost control management, waste reduction, and quality care for beneficiaries.

The Company’s organizational structure includes hospitals, emergency care units, clinics, and other care units that meet the demands of beneficiaries contracting the products sold by the health plan operator. Within the verticalized business model, the ultimate goal is to maximize consolidated value generation (operator and care units) for its shareholders and to provide quality services to beneficiaries in general.

The Company operates through two types of products:

• Medical Assistance Plans
• Dental Assistance Plans

These products are geographically distributed across the five regions of the country.

Health Care Plans

The medical assistance plans, both in the individual/family and corporate categories, are sold in all states of the Northeast Region and in the states of Amazonas and Pará in the North Region. The Company prefers to sell these services primarily where it has its own care network.

The Company offers three types of health plan coverage:

• Nosso Plano: Nosso Plano is the best-selling product among the medical assistance plans. It includes an exclusive care network, including hospitals, clinical centers, emergency care units, imaging diagnostics units, and laboratory collection points. The Nosso Plano client can choose between the Ward or Apartment categories. The Ward category consists of a room with two beds, properly equipped for shared accommodation. In the Apartment category, the beneficiary is entitled to an exclusive room for their treatment when necessary.
• Mix: The Mix line offers services from the exclusive care network, as described in the previous item, as well as limited services from the credentialed network. By purchasing this product, the beneficiary has access to the credentialed network for more care options but does not have access to 100% of the credentialed providers. The Company’s credentialed network has about 1,500 establishments, including hospitals, credentialed doctors, and clinics.
• Pleno: The Pleno line includes services from the exclusive care network and a meticulously selected credentialed network to ensure quality service delivery. With this product, the beneficiary has access to 100% of the Company’s credentialed network.

Dental Plans

Hapvida has credentialed dentists in all states of the country, allowing it to expand its customer base and strengthen its brand with national reach. This brings interesting cross-selling opportunities with its health plans in regions where these are not yet marketed.

The Company offers four types of dental plan coverage: Prevention and Urgency, Mixed, Prepayment, and “Beyond ANS List.” The first product is the simplest, charging the beneficiary only for prevention and urgency procedures. If the beneficiary requires additional services, these are performed on a post-payment basis and paid directly to the service provider (Mixed product).

The Prepayment modality offers national coverage for all procedures included in the list stipulated by the ANS. Finally, the “Beyond ANS List” product offers guaranteed coverage superior to that required by the ANS, including orthodontics and procedures with orthotics and prosthetics.