Denis O’Brien-owned Beacon Hospital revenue at €126m

Earnings before hefty interest and depreciation and other items at the Denis O’Brien-owned Beacon Hospital in Dublin last year increased 28% to €9.2m, new figures show.

Accounts just filed by Beacon Medical Group Sandyford Ltd and subsidiaries showed revenues increased 53% to almost €125.8m.

However, revenues increased only marginally last year on a like-for-like basis, as upgrading work at the hospital resulted in it not operating at full capacity for periods.

The hospital’s EBITDAR (earnings before interest, taxes, depreciation, amortisation, and rent) rose from €7.2m to €9.2m.

However, the hospital posted a pre-tax loss of €13.5m after accounting for €21.5m in non-cash interest and depreciation costs.

Loan interest of €12m was due to Mr O’Brien, but none was paid by agreement, while non-cash depreciation costs ran to €9m.

However, the figures, which are for an 18-month accounting period to the end of December, compare with 12-months in the previous accounting period.

The Beacon opened as a private 183 acute bed hospital in 2006, and Mr O’Brien acquired the loans secured on the business in 2014.

Mr O’Brien provided a cash injection of €94.9m into the hospital firm.

Prior to the recapitalisation, the group had a balance sheet deficit of €76m.

At the end of last December, the hospital firm had positive net assets of €5.2m.

Daragh Kavanagh, group financial officer at the Beacon, said yesterday that the Beacon was “the best capitalised private hospital in the country” and planned with a recently completed €34m capital investment “to significantly grow activity and revenue in 2017”.

He said: “Our newly expanded oncology, endoscopy, urology, day unit and radiology facilities, together with the influx of new consultants working here, have contributed to a year-on-year increase of over 10% in activity — we will see more than 100,000 patients this year.”

The expansion at the hospital includes a 4,000 sq ft cancer care day ward that will see it increase its cancer care services by 40%.

Staff numbers last year increased by 52, increasing from 616 to 668.

Staff costs increased from €35m to almost €56.7m.

A breakdown of the numbers employed show that 511 people are in nursing, medical and medical operations.

A further 157 people work in management and administration. Directors’ pay last year at the hospital firm totalled €943,939.