Profits at Hermitage Clinic rise by 4%

25 November 2013 00:42

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Profits at Hermitage Clinic rise by 4%

Private hospital’s revenue increases by 3% to €54.44m

Pretax profits at a private hospital co-owned by Larry Goodman and developer Seán Mulryan last year increased by 4 per cent to €2.66 million.

Accounts filed with the Companies Office show Hermitage Clinic Ltd recorded the increase in pretax profit after revenues last year increased by 3 per cent from €52.99 million to €54.44 million in the 12 months to the end of December last.

The clinic is a 101-bed hospital in Lucan, Dublin and according to the directors’ report “during the year, the hospital continued to suffer price reductions from health insurers and other purchasers. The hospital also experienced increased costs attributable in part to the use of more expensive consumables and drugs in patient care.”

“These pressures are expected to continue into 2013. In order to mitigate these factors, the hospital must increase activity levels and achieve cost savings through improved efficiency and more aggressive procurement.”

Separate figures provided by Minister for Health James Reilly in a written Dáil response last week to Fine Gael deputy Billy Timmins confirm that numbers on health insurance declined by almost 9 per cent from 2.297 million at the end of 2008 to 2.098 million to the end of December last.

Mr Reilly confirmed that numbers on health insurance reduced further to 2.048 million or 44.6 per cent of the population to the end of September this year.

The accounts show the clinic’s operating profits decreased last year from €3.28 million to €3.19 million. However, interest payments decreasing from €717,764 to €531,285 last year resulted in the increase in pre-tax profits last year.

The numbers employed by the clinic last year increased from 379 to 387, with medical and clinical staff numbers increasing from 286 to 305 while “other” roles declined from 93 to 82.

The profit last year reduced the firm’s accumulated loss from €21.75 million to €19.23 million.

Source: irishtimes.com

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