The Beacon private hospital in Dublin has blamed a fall-off in profits on cost inflation in the sector while warning the business would require “improved reimbursement” from private health insurers to ensure the future viability of services.
Accounts for Beacon Medical Group Sandyford Limited and Subsidiaries show turnover at the group rose by 7 per cent to €202 million last year on the back of what a spokeswoman described as “continuing strong demand for services”.
Despite the increased turnover, profit before tax fell from €4.4 million in 2021 to €1 million last year, while the group’s operating profit fell from €12 million to €9 million. The Denis O’Brien-controlled private hospital linked the downturn in profitability to cost inflation in the sector.
“Cost inflation across the healthcare sector has impacted results in 2022 and the business requires improved reimbursement from the private health insurers to ensure the sustainability of all clinical services going forward,” directors of the business said. They recommended against the payment of a dividend to shareholders.
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Hospitals and insurers have been at loggerheads over who should shoulder the bulk of the additional costs attributable to inflation, with insurers claiming private hospitals can afford to handle items such as higher labour costs without increasing their rates.
Among the hospital’s operational highlights in 2022 was the purchase of a 2.7 acre site adjacent to its Sandyford campus to accommodate a future expansion of the hospital’s clinical facilities
The latest accounts show the Beacon Hospital had 13,000 overnight admissions and more than 200,000 patient visits in 2022. Staffing during the year rose by 4 per cent to 1,258 full-time equivalents.
They also show Sayum Holdings, an Isle of Man-registered entity, owns 80 per cent of the issued share capital of Beacon Medical Group and that Sayum is “ultimately controlled” by Mr O’Brien. He gained control of the hospital on 2014 after buying its debts from Ulster Bank.
Among the hospital’s operational highlights in 2022 was the purchase of a 2.7 acre site adjacent to its Sandyford campus to accommodate a future expansion of the hospital’s clinical facilities.
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The group’s accounts noted that it continued with a “planned capital programme” to upgrade equipment and expand its facilities with an investment of €23.3 million last year.
As well as funding the purchase of the adjacent site, the investment also covered the opening of a new Beacon Limerick Clinic.
Commenting on the performance, the spokeswoman said: “Beacon Hospital enjoyed a strong financial performance in 2022 driven by the continuing strong demand for services, with revenues up 7 per cent to €202 million from the previous year.”
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“The capital investment programme has also continued over the course of the year with a total of €23 million invested in equipment upgrades and the expansion of facilities,” she added.
“Specifically, the Beacon Limerick Clinic opened in 2022 and is now providing radiology, cardiology, vascular, minor procedures and health screening services to those living in Limerick county and beyond,” she said.
The latest accounts show the Beacon’s net debt stood at €93 million, comprising bank loans of €88 million plus finance leases of €5.7 million. The company had net assets of €33.3 million.
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