PRIVATE HEALTHCARE services provider Charter Medical Group pared its accumulated losses to €1.36 million in the year ended June 30th, 2010, according to accounts filed with the Companies Office.

The group, which runs a €20 million community health clinic in Smithfield, Dublin, remained reliant on financial support from its chief executive John Gallagher, who founded Charter Medical in 2006 with property developer Paddy Kelly. The latest accounts show Mr Gallagher continued to advance an interest-free loan of €604,000 to the group during the 2010 financial year.

Last month Mr Gallagher’s Dublin-based medical imaging business Photologic went into liquidation. However, a spokesman for Charter Medical, Stephen Crowley, said the closure of Photologic had no impact on the healthcare group.

In the year to June 30th, 2010, Charter Medical Group’s turnover narrowed from €4.3 million to €3.2 million. However, administration expenses also contracted, and the group moved from an operating loss of €573,360 in 2009 to an operating profit of €451,377.

It also booked an additional profit of just over €800,000 which related to the sale of its subsidiary Charter Medical Diagnostics in 2008. This amount represented a deferred consideration arising from an earn-out clause.

The group’s total accumulated losses were reduced from €2.6 million to €1.36 million.

Mr Crowley said losses had been incurred in the early years of the business as a result of set-up costs, but they are “very optimistic” about the group’s future.

He said the Charter’s clinic in Smithfield was a good example of how “public and private can work closely together” to save money, alleviate waiting times in hospitals and treat people in a community environment. The Mater hospital now operates its minor injuries unit from the first floor of Charter’s Smithfield clinic. He said the group has planned a number of other initiatives in the area.