Galway Clinic says insurance is not keeping pace with costs
Pre-tax profits at the Larry Goodman co-owned Galway Clinic last year increased almost a quarter to €6.38m.
Directors attributed the rise to winning additional tendered public works through the National Treatment Purchase Fund.
Revenues at Galway Clinic Doughiska Ltd last year increased by 5.5pc from €90.65m to €95.97m.
However, directors warn in the accounts that higher costs are eroding profitability as re-imbursement rates from the private health insurers fail to keep pace with medical inflation.
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The directors also state Galway Clinic is facing higher expenditure in ensuring it meets the highest national and international guidelines and standards.
They state that "these costs are forecast to increase further every year and will form a substantial part of the hospital's future cost case".
The private hospital employs 624 staff.
To date, shareholders have not taken a dividend from the business. At the end of December last, the clinic had accumulated profits of €96.2m. The firm's cash increased from €22.89m to €29.9m.
Last year, the clinic spent €6.5m on capital works compared to €5m in 2017.