| 12°C Dublin

Beacon hospital lease company announces €5.4m losses for 2012

THE company that leases the UPMC Beacon Hospital in Sandyford suffered losses of €5.4m in the year to the end of June 2012.

This is an improvement on the 2011 figure of €7.04m.

UPMC Beacon Sandyford Limited leases the private hospital from a group of investors, known as the Tax Investor Group, to UPMC Beacon Hospital Sandyford Limited and provides management support.

Turnover was €6.45m for the 12 months, broadly in line with the previous year.

The south Dublin hospital was built at a cost of about €176m, with US investor UPMC, part of the University of Pittsburgh, holding a majority stake. It invested €25m to take control of the hospital operating business in 2009.

Accounts filed with the Companies Office show that UPMC Beacon Sandyford Limited had debts of €10.2m due within a year of the end of last June, including amounts due to a number of parties within the UPMC group. A further €154.7m is due later.

Around €107m of this relates to obligations under a so-called 'put and call' option agreement to acquire an interest in the Beacon Hospital in 2016.

UPMC bought its majority stake after the company had already been managing the facility for two years.

The investment facilitated a restructuring of the hospital operator's banks debt, with lenders agreeing to spread out the life of existing loans and re-price the debt, which had been in default and at risk of being called in.

The hospital's original backers were led by businessmen Michael Cullen, Paddy Shovlin, John Delaney and consultant Mark Redmond.

UPMC Beacon Hospital lost €9.7m in the 12 months to the end of June 2011. This was down from €10.1m the previous year for the Dublin southside unit.

Irish Independent