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About LHL

LHL is a comprehensive member-based, non-profit health organisation with more than 54 000 members. We offer treatment and health care services on the basis of patients’ medical and personal needs.

With our 250 local associations, our clinics and as operator of a number of hospitals, LHL is uniquely placed to follow up patients and family members both prior to, during and after treatment.

We have health care experts and peer supporters capable of answering all types of questions online, on the telephone or at our treatment centres throughout the country.

Through educating the public, teaching, treatment, follow-up, research and political lobbying, LHL has helped improve people’s lives since 1943.

And we will go on doing just that.

 

LHL, the National Association for Heart and Lung Diseases, was founded in 1943, under the name of the Tuberculosis Relief Society (THO). Tuberculosis was then a major disease group in Norway, and around 10,000 Norwegians suffered from tuberculosis every year. Therefore, a group of idealistic persons identified the need for an organization that could fight for their interests and rights. One of the biggest challenges was to overcome people's fear of infection and the consequent exclusion from society.

The Tuberculosis Relief Society fought for many important social policy issues. The first goals achieved were better treatment options and living conditions, employment and social security and the construction of a vocational school for people that had suffered from tuberculosis.

Today tuberculosis is a rare disease in Norway, and those affected get good  treatment and survive. The school is still in operation though, and now the students a persons with other types of disabilities.

After the decrease of tuberculosis, a new group of diseases emerged: cardiovascular diseases - hearth disease, peripheral arterial disease and stroke. During the 1970ies and the 1980ies medical and surgical treatment for heart disease improved. In Norway the capacity for heart surgery was limited and in the 1980ies it was established an air bridge where patients and health personnel were flown to United Kingdom for treatment. Again the idealists of LHL took action. They argued that it was unacceptable that Norway was unable to give adequate treatment to its own citizens. LHL at that time had a conference center one hours drive outside Oslo. This was transformed to at hearth hospital by building operating theatres and other facilities together with the congress center. Then the Feiring heart hospital opened in 1989.

Due to the smoking epidemic in the western countries, other types of lung diseases such as lung cancer and chronic obstructive lung disease have increased over the last decades. Glittre Sanatorium was a tuberculosis sanatorium, and went on to become a general lung hospital after World War II. The government  operated the hospital until 1990, then LHL took over the buildings and started a modern lung hospital for rehabilitation.

In addition to LHL Hospital Gardermoen, LHL owns and runs rehabilitation hospitals in both Bergen and Nærland (outside Stavanger).

Our hospitals are for historically reasons mainly located in rural communities. Over the last years it has been LHL strategy to change this. We want to have hospitals in urban areal – LHL wants to be where people live their lives.

 

The nature of the business and location

LHL represents and works for patients with heart and pulmonary diseases in Norway. LHL has 52 000 members and owns hospitals in all regions in Norway.

LHL is a non-profit organization. This means that any financial profit remains within the organization and is channeled to medical purposes. No earnings may be taken out of the organization.

As a hospital owner we have extensive services in rehabilitation and treatment. LHL has an agreement with regional health authorities and delivers a material share of public health care services in the fields of cardiac surgery and cardiac and pulmonary rehabilitation.

LHL currently building a new hospital and will expand our capacity in medicine and surgery from 2018. LHL also owns Norway’s largest private health insurance company (Vertikal Helse).

Over the past year, LHL and its subsidiaries have continued restructuring their operations. In September 2015 LHL’s Executive Committee decided to adopt a new governance structure for the LHL group. As a result, the following companies were wound up during 2016: LHL Holding AS, LHL Eiendom Holding AS and LHL-klinikkene AS . Following the dissolution of the companies, their operations are now integrated into the operations of LHL. As of 1 January 2016, the LHL clinics’ operations have been transferred to LHL by means of a transfer of undertaking at fair market value. Fair market value exceeded book value and has thus had a positive impact on LHL’s financial items. The LHL clinics have continued their work to relocate the Feiring and Glitre clinics’ operations to a new hospital building at Gardermoen. Negotiations on the lease were concluded in June 2015, resulting in the signing of a lease with a term of 25 years.

Going concern

After substantial changes, the LHL group’s results of operating activities have been good. However, in 2016 the group’s clinical operations had a loss. This is largely due to a decline in purchases from the South-Eastern Norway Regional Health Authority. In response to this, the organisation in 2016 implemented significant cost cuts in its clinical operations. Costs were also cut in the member organization. In 2017 LHL will continue to work on streamlining its activities and on achieving synergies through the acquired businesses – as well as through gathering its operations at the LHL clinics Feiring and Glittre and the LHL administration in a single place at Gardermoen. 

Equality of opportunity

It is the objective of LHL to be a workplace where there is no discrimination on the grounds of ethnicity, national origin, race, language, religion or belief. LHL seeks to achieve full equality of opportunity between women and men and the association’s policy covers equality of opportunity; it seeks to avoid any discriminatory treatment on the grounds of gender in matters such as wages, advancement and recruitment. Traditionally, LHL has recruited staff from professional communities where men and women are represented equally.

Out of LHL’s staff, 499 are women, amounting to 78 % of the organization’s staff. The Executive Committee has thirteen members, five of whom are women – representing 38 % of the Executive Committee’s members. LHL’s management team consists of eight women and five men.

The company’s position and the business’s profit

In the view of the Committee, the annual accounts for the accounting year 2016 fairly depict the association’s situation and profit of the operations. Beyond the information presented below and in the annual accounts, the Committee is not aware of any other matters relating to market conditions or price trends that are relevant in terms of assessing the company.

The board’s proposal for allocating the profit

LHL’s annual profit is 182 035 848 after tax. The Executive Committee proposes that the profit be allocated to other equity.

The Executive Committee has reviewed the profits of the companies forming part of the group. The total profit for the group is 85 774 365 which is entered against other equity.