Hermitage Clinic reports its first profit of €4m
Published 14/11/2011 | 05:00
PRIVATE hospital the Hermitage Clinic turned a profit last year for the first time since it was established in 2006.
In the year to the end of 2010, the Hermitage made a profit of €4m after tax, according to accounts.
Beef baron Larry Goodman and super-developer Sean Mulryan are among the owners.
The profit is a major turnaround after the Hermitage suffered losses of €619,293 in 2009.
Profits were boosted after turnover increased to €55m from €51m.
The jump to profitability comes despite a management warning that insurance companies have cut the amount they are spending on care. "The hospital suffered significant price reductions from health insurers," according to the directors' report.
Directors noted that increasingly expensive drugs and treatments could squeeze margins.
In a note to the accounts, the private hospital bosses say the dominance of VHI in the health insurance market is a potential risk to the business.
The Hermitage is a 101-bed facility in west Dublin, built at a cost of €125m. Shareholders include Larry Goodman and Sean Mulryan's building group Ballymore Ireland Homes. The owners have invested €26m since it was launched, but that figure is not set to rise further.
"Projections indicate a continuing improvement in operating performance with positive cash generation and no requirement for any additional financial support from shareholders," according to the accounts.
The Hermitage has 350 staff, including 243 medical staff as well as links to 200 medical consultants who use the clinic.
It is currently advertising 18 more job openings.
Many of the shareholders own major stakes in the much longer established Blackrock Clinic in Dublin and in the Galway Clinic.