Profits down at hospital group

Ian Guider

The company, which operates four hospitals and one long-term care facility, saw its operating surplus drop from E9.2m in 2003 to E7.9m last year.

Although the hospital’s income rose on a year-on-year basis by nearly E13m to E134m, increased operating and administration expenses ate into its profits.

Bon Secours chief executive, Pat Lyons, said the company required an adequate surplus to fund the borrowings necessary to reinvest in facilities. It would also mean help company could continue providing quality care to its patients.

Bon Secours is investing E65 million in its Galway and Dublin facilities to increase bed capacity.

It also plans major developments at its Cork and Tralee hospitals.

Mr Lyons said: “Although our hospitals are extremely busy and volumes are growing, it will become increasingly difficult to generate the necessary return on capital for reinvestment without adequate price increases from health insurers to match general hospital [and] medical inflation.” The company said it treated more than 60,000 patients last year, and that its surplus will be reinvested in the hospitals.

Bon Secours did not have a corporation tax bill as it has been granted charitable status by the Government.

During the year, the company made E304,000 of donations to charitable causes.

This is up from the E48,000 it gave out the previous year.

The number of people employed by Bon Secours rose by 73 to 1928.

This increase pushed up the group’s wage bill by 17% to E74.5m.

Emoluments for the company’s directors, which includes members of the Sisters of Bon Secours, was E62,000.

The board is chaired by Sister Margaret Mary Hanafin.

The largest hospital in the group is in Cork, where it has more than 700 private beds.

The company also runs the Mount Desert nursing home in the city.