By Ulrike Dauer

FRANKFURT--German private hospital operator Rhoen-Klinikum AG (RHK.XE) said on Thursday it is proposing a higher dividend for 2014 and plans to buy back more shares.

Both measures aim to ensure shareholders participate in profits generated by its integration into parent Fresenius SE's (FRE.XE) hospital business.

Rhoen-Klinikum said it plans to raise the dividend for 2014 to EUR0.80 a share from EUR0.25 a share for 2013.

It also said it plans to buy back around 10% of its equity capital after the annual general meeting in June, though decisions on the timing and economic parameters of the share buyback have yet to be made. The plans would use an existing authorization for buying back about 10% of its equity capital.

Rhoen-Klinikum was bought by Fresenius, a German health-care group, and integrated into its existing hospital division Helios in 2014, after the transaction closed.

Write to Ulrike Dauer at ulrike.dauer@wsj.com

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