Bon Secours profits jump to €10.12m on falling costs and increased revenues

Revenue increases were driven by a significant increase in both inpatient and outpatient activity

Sun, 09 Jun, 2024 - 13:19

Gordon Deegan

Falling energy costs contributed to pre-tax profits at the Bon Secours Health Group last year increasing by 57% to €10.12m.

New consolidated accounts for the Cork headquartered Bon Secours Health System (BSHS) Company show that the healthcare group's profits rose as revenues increased by €44.16m or 11% from €390.9m to €435m in the 12 months to the end of December.

The group operates acute hospital facilities located in Cork, Dublin, Galway, Tralee and Limerick and the directors state that revenues were driven by a significant increase in both inpatient and outpatient activity.

The group’s operating profits increased by 75% to €12.59m and the directors state that the increase in operating profits was driven by decreased energy costs which were offset by a rise in staff costs.

The directors state that they achieved a pre-profit of €10.12m — after also taking into account interest payments of €4m off-set by a €1.579m profit from a joint venture investment — "despite a competitive and challenging trading environment”.

The accounts show that the cash generated from operating activities in 2023 was €34.16m compared to €23.7m in 2022.

Cash outflow on capital improvements was €57.34m compared to €26m in 2022.

Staff increases

Numbers employed last year increased by 270 from 3,755 to 4,025 made up of 3,114 in healthcare and associated services and 911 in administration.

Staff costs last year increased by €12.6m for €191.6m to €204.26m. The directors state that staff together with 450 medical consultants “work in partnership to provide advanced medicine and exceptional care to our patients”.

Pay to key management personnel last year increased from €3m to €3.25m.

The profit for 2023 takes account of non-cash depreciation costs of €14.88m. Operating lease expenses totalled €5.99m.

Developments

The directors state that in 2023, the group progressed the development of the new 170-bed Limerick hospital on the outskirts of Limerick City "which will greatly expand services currently offered to patients in the mid-west”.

They add that the group plans to open a new €14m medical assessment unit and surgical day ward in Tralee in 2024.

The directors also state that the construction of surgical and oncology day ward in Dublin was completed and opened in 2023.

The directors’ report also states that patient activity increased to more normalised levels of 254,239 in 2023 compared to 237,529 in 2022.

The directors state that the increase "in activity level reflects the demand from both private patients and also an increase in public patients who are referred to the Group via the HSE and the National Treatment Purchase Fund”.

At the end of December last, shareholder funds totalled €176.15m that included accumulated profits of €116.4m. Cash funds increased to €7.63m. The group has charitable tax status and is not liable to corporation tax though a Limerick subsidiary incurred a modest corporation tax charge of €3,535.