Revenues rise at Dublin's Beacon Hospital in 'strong' year
Earnings at the Denis O'Brien-owned Beacon Hospital in Dublin last year totalled €6.2m, new figures show.
New accounts by Beacon Medical Group Sandyford Ltd and subsidiaries confirm that the business enjoyed the earnings after revenues amounted to €91.7m last year.
The revenues for 2016 on a like-for-like basis increased by 9pc based on the revenues of €125.8m for the prior 18-month period.
The earnings before interest, taxes, depreciation, amortization and rent (ebitdar) at the hospital in 2016 follow ebitdar of €9.2m for the prior 18-month period.
Group financial officer at the Beacon Hospital, Daragh Kavanagh said yesterday that "2016 was a good year for the hospital in terms of growth, activity and revenue".
"It was a solid year for margins and in 2016 we invested very, very heavily in expanding our services."
Mr Kavanagh said that 2017 has been "a very strong year" for the hospital and margins have increased.
The hospital has enjoyed its busiest ever summer in 2017 with occupancy over 90pc throughout the summer months. "We are very confident that 2017 will show very strong growth at the hospital," he said.
Mr Kavanagh added that ebitdar is the metric the hospital uses to measure financial performance "We are very pleased with the financial performance of the hospital and in 2018, we are looking at very strong growth."
The hospital has this year added 77 full-time equivalent positions to date in response to the increased demand on its services. At the end of last year, the hospital had over 1,100 consultants, nurses and healthcare professionals on its staff and last year dealt with over 113,000 patient visits.
The Beacon opened as a private 183-acute-bed hospital in 2006 and the jobs were made secure there in 2014 after the intervention of billionaire, Mr O'Brien who acquired the €212m loans attached to the business.
Headed by CEO and co-founder Michael Cullen, the hospital today has nine operating theatres and two linear accelerators for radiation therapy.
The business last year enjoyed a pre-tax profit of €16m as a result of a non-cash exceptional gain of €30m concerning the accounting recognition of the hospital's loans from Mr O'Brien being interest free.
Mr Kavanagh said: "This non-cash gain has no relevance to the day-to-day running of the hospital and is an accounting requirement recognising that the loans are non-interest bearing."
Last year, the hospital completed a two-year €34m capital investment programme. The directors state that the hospital's capital investment has continued into 2017, with a further €10m being spent.