Blackrock Clinic operating profit up

Operating profit at Blackrock Clinic, a private Dublin hospital, increased by 28 per cent to €11.9 million in 2006, according to accounts just filed.

Turnover at Blackrock Hospital Ltd increased from €68.9 million to €77.3 million during the year due to significant investment in new and existing services in recent years.

The hospital's directors said: "Medical inflation, particularly in the area of wages and salaries, is continuing to run ahead of price increases being received from insurance companies. Inpatient occupancy fell slightly during the year as a consequence of falling lengths of stay and a shift to more day-case activity."

They said construction of more private hospitals would increase competition.

Staff costs at the hospital rose to €28.2 million in 2006 from €25.7 million the previous year, while the number of staff increased to 581 from 555.

The hospital's operating profit margin rose from 13.5 per cent in 2005 to 15.5 per cent last year, while the average time taken to collect trade debt continued to fall, dropping to 42 days in 2006 from 47 days the previous year.

The hospital's shareholders are its founder, consultant Jimmy Sheehan; his brother, Joe Sheehan, an orthopaedic surgeon; fellow consultant George Duffy; property developer John Flynn; and meat processor Larry Goodman.

A dividend of €3.6 million was paid on ordinary shares in 2006.

Joe Sheehan and Mr Goodman each own 26 per cent of the shares in the hospital. Mr Flynn and Mr Goodman became shareholders when health insurer Bupa sold its 56 per cent stake in the hospital last year.