Beacon losses continue to rise

Losses continued to mount last year at the Beacon Private Hospital with pre-tax losses totalling €8.7m.

Newly filed accounts show that UPMC Beacon Hospital Sandyford Ltd — now renamed Beacon Hospital Sandyford Ltd — recorded the losses in spite of marginally increasing revenues, which went from €70.1m to €71.6m, in the 12 months to the end of last June. The Beacon generated losses of €9.8m in 2012.

The hospital’s struggles coincided with a continuing drop in numbers on private health insurance — there are now just over two million people with in-patient cover, compared with almost 2.3m people when the market peaked in 2008.

Last year’s loss takes account of non-cash depreciation costs of €1.3m. The pre-tax loss also resulted in Beacon’s accumulated losses climbing from €57.14m to €65.86m.

In April, it was announced that billionaire businessman, Denis O’Brien had taken control of the Beacon. The hospital — which employs 600 staff and 200 medical consultants — was previously owned and operated by the University of Pittsburgh Medical Centre, an American private hospital operator.

A statement by the hospital stated that: “The new debt owner [Mr O’Brien] will not restructure the debt and clearly indicated his intent to own, control and manage Beacon Hospital.”

A note attached to the accounts — signed off prior to the banks’ deal with Mr O’Brien — states that the directors acknowledged that circumstances create material uncertainties over future trading results and cash flows.

This followed the directors taking into account the company’s performance in 2013, its planned activities and associated cash flow projection and directors’ efforts to preserve cash and restructure UPMC Ireland’s debt.

The numbers employed at the hospital last year increased from 557 to 583 with the business’ staff costs increasing marginally from €33.12m to €33.6m.