THE COMPANY operating the Blackrock Clinic in south Co Dublin has reported a pre-tax profit of €13.7 million in 2008, a reduction of €1.3 million on the previous year’s return.
Turnover at Blackrock Hospital Limited rose to €87.9 million from the €86.9 million recorded in 2007.
The group said the 9 per cent contraction in pre-tax profit was due in part to tighter margins together with higher depreciation and financing costs associated with Blackrock Clinic’s five-year, €100 million expansion and refurbishment initiative, which was approved by the hospital board in 2008.
Bryan Harty, chief executive of the clinic, said: “During the year the hospital’s margins contracted as price increases received did not match increases in medical inflation.
“Medical inflation continues to increase due to the usage of high-cost drugs and consumables together with technological advances, increasing the need for more expensive high-tech medical equipment.
“The increase in medical salaries in recent years has also outpaced the level of price increases received on services,” he said.
Although the hospital has seen an increase in overall patient numbers over the past two years, Mr Harty pointed out that this year’s recessionary environment had resulted in a reduction in out-patient attendances.
“Certainly for 2009, out-patient numbers have seen a decline, particularly with regards to what could be regarded as discretionary expenditure, such as laser eye surgery to correct short-sightedness,” he said.
In 2008, the clinic treated 20,000 in-patient day cases and more than 100,000 out-patient cases.
More than 1,000 people were treated under the National Treatment Purchase Fund.
The clinic’s expansion programme includes construction of three new floors, due to open in spring 2010, which will increase available bed numbers by 42 per cent.
A new dedicated day care floor will also be completed, increasing capacity at the hospital by 200 per cent.
Two large new operating theatres will also be added.
Mr Harty said the current liquidity crisis in the Irish credit market would not derail the hospital’s expansion and refurbishment programme.
“We are not dependent on further support from the banking sector, as all of our funding is in place and we will continue with the expansion of our intensive treatment unit and our decontamination unit,” he said.
The private hospital currently employs more than 700 people, of whom 100 are contract staff.
The expansion is expected to create around 100 new clinical and administrative jobs.
