Increased day-patients boost Blackrock Clinic profits

Increased in-patient and day-care activity last year contributed to pre-tax profits at the Blackrock Clinic increasing by 23.6% to €13.6m.

New figures show that Blackrock Hospital Ltd and subsidiaries enjoyed the jump in profits as revenues increased by 11%, from €93.25m to €103.4m.

In the accounts, the firm’s directors state that the increase in activity “was possible because of the additional capacity created as part of the hospital’s expansion and refurbishment programme which has enlarged the hospital’s in-patient and day care capacity by between 50% and 100%”.

Last year, the hospital employed 724 people directly, with another 114 people employed indirectly.

Established in 1984, the hospital, which is part owned by Larry Goodman, has generated consistently strong profits in recent years; generating pre-tax profits totalling €64.6m between 2010 and 2014. The firm last year declared a dividend of €4m, of which €3.55m was paid to year end.

The directors’ note said that, over the last eight years, Blackrock Clinic has invested €144.6m on its medical equipment and facilities, including €114.8m on a major expansion and refurbishment programme.

Management further states that a significant risk to business “is the potential erosion of its profitability through a combination of a reduction in prices from insurers and other purchasers together with an increase in costs due to rising general and medical inflation”.

“Competition among healthcare providers, in recent years, following the opening of new hospitals has also eroded margins.”

A further major risk is the affordability of private health insurance and in recent years, substantial increases in health insurance premiums have caused a number of people to drop their cover.