Earnings at Beacon Hospital triple to €7.2m
Published 28/07/2015 | 02:30
Earnings at the Beacon Hospital rose more than three fold last year to €7.2m, new figures show.
New accounts just filed by Beacon Medical Group Sandyford and subsidiaries show that revenues rose by 10pc to €82.2m in the 12 months to the end of June 2014.
The group chief finance officer with Beacon, Daragh Kavanagh, said that the hospital "goes from strength to strength" with revenues and patient numbers up around 10pc in the current year.
Mr Kavanagh said: "The growth trajectory is continuing and the performance is greatly improved. We would feel really, really positive about the hospital and last year's performance was very strong."
The Beacon opened as a private 183 acute bed hospital in 2006 and the jobs were made secure there last year after the intervention of Denis O'Brien.
The accounts show that the hospital did record a pre-tax loss of €6.4m last year and this arose from net interest payments of €9.49m.
However, Mr Kavanagh said the hospital firm paid no interest last year as Mr O'Brien, who has taken over the hospital's loans, did not seek the interest payments and the €9.4m appears in the accounts as an accrual. He said: "No interest was paid and the interest payments as they appear in the accounts had no impact on the performance of the business. The true metric of the business is the hospital's EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization and Rent) and that was €7.2m up from €2m from the previous year.
He added: "Mr O'Brien bought the loans totalling €212m from Ulster Bank and the former owners UPMC and as a result, the business is debt free." Mr Kavanagh said that Mr O'Brien's focus is not about the hospital paying him back money but supporting the hospital in expanding its services.
Located in Sandyford, South Dublin, Beacon Hospital is one of the most advanced hospitals in Europe, with nine operating theatres and two linear accelerators. The Beacon treated around 100,000 patients in 2014.
The numbers employed increased by 11 to 616 with staff costs rising from €34.9m to €35.7m. A breakdown shows that 476 are in nursing, medical and operatives with 140 in management and administration.
The firm's cash last year increased from €2.8m to €4m.