Goodman-owned clinic sees profits rise to €13m

Pre-tax profits at the largest private hospital in the west of Ireland increased by 1.5% to €13.15m in 2013, in spite of a slight fall in revenues.

New accounts filed for the Galway Clinic show that the hospital recorded the profit rise despite revenues dipping from €86m to €85.8m in the 12 months to the end of December 2013.

The hospital in 2013 dealt with more patients — 67,988 out-patients and in-patients — compared to 66,332 in 2012.

The clinic is part-owned by beef baron, Larry Goodman and according to the directors’ report “the operating environment remains difficult.

Continued price decreases for our services, reduced private health insurance membership due to spiralling premiums and downgrading of insurance cover have all had a serious impact on our operations”.

The directors’ report for Galway Clinic Doughiska Ltd states that “the clinic has instigated cost-saving programmes to alleviate the impact of these changes”.

Numbers employed at the hospital last year rose from 554 to 564. The directors state that an extension of 80 in-patient beds in Galway to accommodate the growing demand for A&E, diagnostic and endoscopic services “is also in the pipeline”.

Capital expenditure for the year amounted to €11.1m; repayment of bank loans reached €4.25m and tax paid amounted to €3.98m.

The clinic’s cash balance last year rose from €24m to €27m with its accumulated profits totalling €61.7m.

The hospital has yet to pay a dividend to shareholders and all profits have been re-invested in the business. The figures show staff costs at the clinic last year decreased marginally from €28.96m to €28.82m with the clinic employing 383 clinical and medical staff and 181 under the ‘other’ heading.