Pre-tax profits at the group which operates the Blackrock Clinic in south Dublin last year more than doubled to €14.5m.
New accounts filed by the Larry Goodman-family Trust owned Blackrock Hospital Ltd and subsidiaries show that the health group recorded the 128% increase in pre-tax profits from €6.35m to €14.5m after revenues surged by 21.5% from €130.35m to €158.48m.
The directors state that the increase in profits in 2021 is due to the fact that in 2020, the hospital's entire facility was given over to the provision of public health services for a three month period as part of the national effort in dealing with the Covid-19 pandemic.
The directors state that during that period, the hospital operated on a not for profit basis.
The directors state that although the hospital continues to increase activity, the cost of providing healthcare remains a concern as medical inflation is not being matched by price increases from health insurers.
They state that "in addition to medical inflation, the Covid-19 pandemic has also significantly increased the cost of providing healthcare, which is likely to remain a challenge for the foreseeable future".
Numbers employed at Blackrock Clinic last year increased from 955 to 996 and in addition, the hospital indirectly employed 107 through catering and cleaning sub-contractors.
Staff costs last year increased from €56.15m to €64.26m that included a spend of €3.1m on temporary and agency staff and €1.2m on recruitment, training, medical and uniforms.
The clinic’s costs under 'other operating charges’ also increased sharply, rising from €56.16m to €69m. Pay to directors last year reduced from €504,365 to €446,674 made up of €380,902 in emoluments and €65,772 in long term incentive schemes.
The profit last year takes account of non-cash depreciation costs of €10.11m.
Capital expenditure at Blackrock Clinic last year totalled €5.8m with a further €5.4m committed at year end.
On the labour challenges facing the business, the directors state that "the shortage of suitably experienced and qualified medical personnel will continue to pose a major challenge for both the public and private sectors over the next few years and accordingly the hospital's ability to recruit staff will be crucial as it continues to expand its services to meet the growing demand for healthcare."
A note attached to the Blackrock Hospital Ltd accounts states that the hospital is seeking to recover €1.2m in legal costs awarded to it by the High Court taxing master from a former shareholder and director.
The former shareholder and director had initiated a series of shareholder legal actions where the Blackrock Hospital Ltd was named as a defendant.
At the end of December last, the group had shareholder funds of €150.36m that included accumulated profits of €90.55m. The group’s cash funds more than doubled from €7.6m to €20.76m.
Reporting by Gordon Deegan
