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UPMC posts €72m loss on Beacon Hospital disposal

The main Irish arm of US medical firm, the University of Pittsburgh Medical Centre recorded a loss of €71.9m on its disposal of the Beacon Hospital last year, new accounts show.

UPMC Ireland Ltd sold the clinic and relinquished all management responsibilities at the private hospital in Dublin early last year.

Ulster Bank sold loans linked to the Beacon to the billionaire businessman, Denis O’Brien, allowing him to take control of the hospital.

New accounts filed by UPMC Ireland Ltd show the firm recorded a €33m loss on the disposal of the Beacon Hospital and wrote off loans to UPMC Beacon Hospital Sandyford Ltd totalling €38.9m.

A note attached to the accounts states as part of the disposal of the company’s investment in UPMC Beacon Hospital Sandyford Ltd, a loan was settled for €1.9m which resulted in a writeoff of €38.9m

The loss on disposal and loan writeoff resulted in the firm recording a pre-tax loss of €71.1m for the 12 months to the end of December last.

Losses at UPMC Beacon Hospital Sandyford Ltd were €9.8m in 2012 and €9.7m in 2011. Beacon opened as a private 183-acute bed hospital in 2006 and the jobs were made secure there last year after the intervention of Denis O’Brien.

A spokeswoman for the Beacon Hospital said yesterday that “the hospital is performing very well”.

She said: “It is an incredibly positive story. We have an extremely supportive shareholder.”