Madam, - I would like to make some corrections to a report in your edition of August 30th relating to the 2004 accounts of St Vincent's Healthcare Group Ltd (SVHG Ltd).
The report refers to a sharp fall in profits from €5.4 million to €846,000. We would point out that SVHG Ltd is a registered charity and therefore a not-for-profit organisation. SVHG Ltd consists of two public branches, St Vincent's University Hospital and St Michael's Hospital. It also has a private hospital branch, St Vincent's Private Hospital. The company makes surpluses or deficits from time to time. The surplus of €5.4 million in 2003 related to an adjustment to an underfunding (from the Eastern Regional Health Authority and the Department of Health and Children) in the previous year.
While Ltd is a private company, approximately 80 per cent of the business relates to the provision of public hospital services. Comparing its results with those of the Mater Private Hospital is therefore both misleading and inappropriate.
The report refers to the fact that the assets of the company are included in the accounts on a historical cost basis (€80 million). This is factually incorrect. The buildings of the company are valued in the accounts on a depreciated replacement cost basis while the hospital land is valued on an open market basis (total value about €273 million).
The report also refers to a grant of €147 million for capital purposes supplied by the Eastern Region Health Authority. This figure is misstated. The correct capital grant figure for the year 2004 is €56 million.
The article also refers to a grant of €40 million from the European Structural Funds. This figure is also incorrect. In the first instance no funding was received from the European Structural Funds in 2004. A grant of €40,000 was received from this source many years ago. - Yours, etc,
CORMAC MALONEY,
Financial Controller,
St Vincent's Healthcare Group,
Dublin 4.