Consortiums bidding for Mount Carmel hospital await decision

Two bids are being considered by the National Asset Management Agency for Mount Carmel private hospital in Dublin, amid fears the sales process has stalled.

The bids were submitted on November 1st for the country’s only private maternity hospital, in Churchtown, Dublin 14, but the State property agency has yet to decide whether to accept either of them or pursue other options for the hospital.

The two consortiums bidding for the hospital are Centric, a Kildare-based health company led Dr Ray Power and Maurice Cox, and financier Fergal Mulchrone, who is backed by the Barry Investment Management Company, a vehicle for Tony Barry of Barry's Tea.

When contacted, Mr Mulchrone would only say: “We have made an offer for the hospital which still stands. Our only interest is in the hospital as a going concern.”

Staged payments
Centric was previously reported to have submitted an €8 million bid for the hospital. However, after due diligence the consortium is understood to have lowered its offer to a €2 million up-front payment with further staged payments based on performance.

In December 2012 Centric announced a €20 million investment from Metric Capital Partners to develop 10 primary care centres in Ireland and to complete the acquisition of a diagnostics company.

Mount Carmel was acquired by developer Gerry Conlan in 2006 with a €60 million loan from AIB.

This loan was later transferred into Nama along with his other borrowings. If Nama decides to sell the hospital, it’s likely to do so at a steep discount.

In addition to private maternity care, Mount Carmel carries out a variety of elective operations, including hip and knee replacements. In September, Mount Carmel made two senior appointments in Prof Sean Daly and Dr Michael O'Connell – both consultants at the Coombe women's hospital – to join its obstetrician and consultant team.

Mount Carmel chief executive John O’Brien said at the time of their appointment that he hoped the private hospital’s future ownership would be resolved soon.