Increase in cost of insurance hits profits at Galway Clinic

The spiralling cost of medical indemnity insurance is an impediment to attracting leading physicians into Ireland, according to directors of one of the country’s leading private hospitals.

Directors of the Galway Clinic made the comments as part of its latest annual report which show a 2.6% drop in pre-tax profits from €13.15m to €12.8m last year.

The drop in pre-tax profits came in spite of revenues at Galway Clinic Doughiska Ltd increasing by 1% going from €85.83m to €86.85m.

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 have had a serious impact on our operations.”

The clinic has 146 in-patient beds and the directors state that “the clinic has instigated cost-saving programmes to alleviate the impact of these changes”.

The clinic is part-owned by beef baron, Larry Goodman and according to the directors’ report the clinic last year treated 68,991 patients compared to 67,988 in 2013 and admissions were recorded from over half of the counties in Ireland.

The numbers employed at the hospital increased from 564 to 585.

The firm recorded an after tax profit of €11.27m after paying corporate tax of €1.53m. The clinic’s cash balance last year increased to €24m with its accumulated profits totalling €73m.