Hermitage nurses a 46pc drop in profits
Pre-tax profits almost halved in 2018 at a private hospital co-owned by two of the country's best-known businessmen, Larry Goodman and Sean Mulryan, to €935,982.
New accounts lodged for the Hermitage Clinic show that the business recorded the 46.5pc decline in pre-tax profits in spite of revenues increasing by 6pc, to €77.9m from €73.69m, in 2018.
Numbers employed at the 112-bed private hospital based at Lucan in west Dublin increased to 495 from 450, as staff costs went up to €26.7m from €25m.
According to the directors' report for Torcross Ltd and subsidiaries, "growth in turnover was driven by a combination of volume growth across a number of specialities and some very modest price increases with health insurers, after 10 years of compounded discounting".
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The directors said that challenges facing the business included inflationary pressures in both people costs and the medical supply chain, pricing negotiations with health insurers, a lack of customer understanding of excesses and co-payments, and the ongoing challenges of recruiting and retaining the best people.
A factor behind the drop in pre-tax profits was non-cash depreciation costs increasing to €5.4m from €4.3m.
The directors said the business had received €39.25m in funding from shareholders since the firm commenced.
They added that "plans for the next two years include replacement of key modalities and technologies, and further expansion of capacity in both inpatient and outpatient areas to support targeted growth in key specialities".