Medical inflation blamed as profits fall at Blackrock Clinic
Published 11/11/2016 | 02:30
An increase in medical inflation contributed to pre-tax profits at the Blackrock Clinic dropping marginally to €13.1m last year in spite of a jump in revenues.
New figures show that Blackrock Hospital and subsidiaries last year recorded an 8pc increase in revenues from €103.4m to €111.4m.
According to the directors' report, "there was a strong increase in in-patient and one-day care activity during the year following the creation of additional capacity as part of the hospital's expansion and refurbishment programme".
The directors state that "the finance benefit of this increase was offset by an increase in the hospital's cost base due to growth in general and medical inflation not being matched by an increase in reimbursement rates from insurances companies which has resulted in a decline in margins".
During last year, the hospital employed 733 directly with another 110 people employed indirectly.
Established in 1984, the hospital has generated consistently strong profits in recent years, generating pre-tax profits totalling €75m between 2010 and 2015.
The firm declared a dividend of €5m last year, of which €2.9m was paid prior to year end.
The profit takes account of non-cash depreciation costs of €7.6m.
The figures show that staff costs at the hospital last year increased from €38m to €42m, and that included €2.13m in costs related to temporary and agency staff.
The group's accumulated profits stood at €69m at the end of December last with shareholder funds totalling €90m. The group's cash last year decreased from €4.18m to €791,881.