Doubling of operating losses at private Aut Even hospital blamed on cost rise

THE Aut Even private hospital in Kilkenny saw its operating losses double last year.

Newly-filed accounts for the facility, which is now owned by the Harlequin Healthcare Group, reveal operating losses of more than €1.56 million compared to a loss of €738,734 in 2005. At pre-tax level, losses were €2m against €1.16m in 2005.

The company said the loss reflected higher operating costs and a greater interest burden.

It added: “Revenue increased by 1% to €10.7m as a result of price increase and increased activity, even during a significant refurbishment programme which reduced bed capacity by 50% for most of the year.

“Operating costs increased by €0.9m to €12.3m, driven by increases in payroll costs of €0.75m arising from both rate increase and exceptional once-off payroll costs, increased depreciation charges of €0.27m as a result of the refurbishment and essential equipment purchases, and other cost reductions of €0.12m.”

But the company is expecting to be profitable in 2008 when the refurbishment is completed.

According to the account, staff costs increased from €5.59m in 2005 to €5.9m by the end of December 2006. The number of people employed rose by one to 165, though medical and surgical staff decreased by four to 129.

Shareholders’ funds at the year end, reflecting the continued losses, fell to €5.6m from €7.6m.

Long-term debt increased by more than €5m to €14.7m and this figure includes loans from its parent company and a €1.5m loan from Harlequin’s chief executive Jerry Conlon.

Harlequin bought the 104-bed Aut Even in 2005. It has since acquired Dublin’s Mount Carmel Hospital, which it bought in 2006 for a reported €50m. It also owns St Joseph’s in Sligo and is building another private facility in Naas, Co Kildare.

Harlequin was set up in 2003 by Mr Conlon, a Kildare-based property developer. Its backers include Philip Lynch, the chief executive of One51.