Private hospital expects revenues to rise but talks with bank ongoing

PRIVATE hospital group Mount Carmel expects revenues to have increased 5% to €67 million for last year but the company remains locked in discussions with AIB regarding its future.

It is confident there will be a satisfactory outcome from these discussions.

The company wrote down their assets by almost €40m in 2008 following an impairment review, which it was required to perform. This referred to the hospital building in Dublin. As a result, in the year the company recorded pre-tax loss of €48.5m, up from losses of €8.5m the previous year.

According to accounts just filed for Mount Carmel Medical Group Limited, the directors are in discussions with their banks and shareholders in order to refinance the group debt and restructure the group.

A company spokesman said yesterday that these discussions are ongoing.

The directors also said they have a reasonable expectation that the group has and will have adequate resources to continue in operational existence for the foreseeable future and remain confident that a restructuring will be achieved.

The group owns three hospitals, Mount Carmel in Dublin, Aut Even in Kilkenny and St Joseph’s in Sligo.

According to the 2008 accounts, costs of almost €1m were incurred with the tender process to build co-located private hospitals on public hospital sites.

The accounts said the difficulties in the Irish economy in the latter part of 2008 has resulted in difficulties in raising finance.

Since the balance sheet date, during 2009, a voluntary redundancy programme resulted in a reduction of 47 staff by December 2009.

The group saw revenues increase from €55.8m to €63.6m in 2008.

The closing shareholder deficit in the year was €65.7m, up from €17.1m in the previous year.

Gerald Conlan, David Martin, Colm Gunne, Niall Donnelly, Gary Courtney and former IAWS chief executive Philip Lynch are listed as directors in the accounts. However, Mr Lynch resigned in November 2008 and Mr Martin resigned in May last year.

In July 2006, private healthcare group Harlequin bought Mount Carmel in south Dublin for a reported sum of €65m. The hospital was offered up for tender by its owners, the Sisters of the Little Company of Mary.

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