Profits at Blackrock Clinic jump to €13.6m
Published 13/11/2015 | 02:30
Increased in-patient and day-care activity last year contributed to pre-tax profits at the Blackrock Clinic increasing by 23.6pc to €13.6m.
New figures show that Blackrock Hospital Ltd and subsidiaries enjoyed the jump in profits after revenues increased by 11pc going from €93.25m to €103.4m.
The directors state that the increase in activity "was possible because of the additional capacity created as part of the hospital's expansion and refurbishment programme which has enlarged the hospital's in-patient and day care capacity by between 50pc and 100pc".
During last year, the hospital employed 724 directly with another 114 people employed indirectly.
Established in 1984, the hospital - which is part owned by Larry Goodman - has generated consistently strong profits in recent years generating pre-tax profits totalling €64.6m between 2010 and 2014. The firm last year declared a dividend of €4m.
The directors state that over the last eight years, Blackrock Clinic has invested €144.6m in its medical equipment and facilities including €114.8m on a major expansion and refurbishment plan.
The directors state that a significant risk to business "is the potential erosion of its profitability through a combination of a reduction in prices from insurers and other purchasers together with an increase in costs due to rising general and medical inflation".
The directors state that "competition amongst healthcare providers in recent years following the opening of new hospitals has also eroded margins".
The report states that a further major risk is the affordability of private health insurance and in recent years, substantial increases in health insurance premiums has caused a number of people to drop their cover.
Staff costs last year were €38.9m. Remuneration for directors totalled €646,766 while the profit last year takes account of non-cash depreciation costs of €7.34m. Shareholder funds totalled €76m.