Beacon Hospital paid €5.4m by majority owner UPMC as buffer to cumulative loss
Published 15/04/2010 | 05:00
BEACON Hospital's majority owner UPMC paid the private health facility €5.4m as a buffer to cumulative losses racked up by the end of last June.
The payment is revealed in accounts just filed by UPMC Ireland, the local offshoot of non-profit University of Pittsburgh Media Centres, which owns 66pc of Beacon.
The accounts show UPMC Ireland suffered losses of €5.6m in the year ended June 2009, bringing its total losses to more than €7.2m.
The bulk of those losses were linked to UPMC's "reimbursement" of cumulative losses at Beacon, which triggered payments of €5.4m in 2009 and €1.5m in 2008.
The latest accounts for Beacon show losses of €14m for the 16-month period ended in December 2008, on foot of losses of €8.8m in the 12 months to August 2007.
UPMC paid €25m for its stake in the Beacon Hospital last year and has recently agreed to give the group an extra €10m in working capital to fund expansion.
The arrangement leaves Beacon with €40m in working capital from UPMC and comes as the hospital develops an extended orthopaedic unit and 31 new beds.
The hospital's original backers, businessman Michael Cullen, Landmark Development's Paddy Shovlin and surgeon Mark Redmond, have retained a 33pc interest in Beacon.