Profits at Denis O'Brien's Beacon Hospital to be hit by HSE Covid deal

Profits at Beacon Hospital will fall this year because of the agreement to hand the hospital's entire capacity to the Health Service Executive for three months in response to the Covid-19 pandemic.

A spokeswoman for the Denis O’Brien-owned hospital said profits will be slightly below 2019 despite the hospital being significantly busier before and after the three-month HSE agreement.

New accounts for Beacon Medical Group Sandyford Ltd show that operating profits at the hospital group more than doubled last year to €7.2 million. This came as revenues rose by 16 per cent to €142.66 million, from €122.66 million in 2018.

The entire capacity of the hospital was provided to the HSE on a not-for-profit basis in response to Covid. But no Covid patients were treated at the Beacon under the arrangement.

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“Beacon Hospital was not a designated Covid receiving centre. Therefore HSE patients admitted to Beacon Hospital during this timeframe were for time sensitive related medical and surgical treatments,” said the hospital’s spokeswoman.

The hospital group recorded a pretax profit of €1.85 million after interest payments of €5.3 million are taken into account.

However, €4.28 million of those interest payments concern notional payments to 80 per cent shareholder Mr O’Brien and 20 per cent shareholder, the Beacon Medical Group, which the company doesn’t actually pay.

The notional payments are included under accounting rules.

Revenues at the hospital last year increased due to higher activity across all hospital services. The 199-bed hospital had more than 130,000 patient visits. More than 1,400 consultants, nurses and healthcare professionals work at the hospital.

Over the last five years, the Beacon Hospital has spent €69 million on capital investment. The capital spend for 2020 is projected to be €9 million.