Pre-tax profits at the Larry Goodman co-owned Galway Clinic last year increased by 23 per cent to €6.38 million.
The directors of the clinic company attribute the increase in pre-tax profit to the hospital benefitting from winning additional tendered public works through the National Treatment Purchase Fund.
Revenues at Galway Clinic Doughiska Ltd, which employs 624 staff, were 5.5 per cent higher last year at €95.97 million.
On the challenges facing the private clinic, the directors say medical inflation is eroding the hospital’s profitability as reimbursement rates from private health insurers fail to keep pace with medical inflation.
The directors also say the Galway Clinic is facing higher expenditure in ensuring it meets the highest national and international guidelines and standards.
They say “these costs are forecast to increase further every year, and will form a substantial part of the hospital’s future cost case”.
On the risks facing the business, the directors say medical indemnity insurance costs are increasing significantly, which is another impediment to attracting leading physicians into the country.
However, the directors say over the long term they are positive about the patient-centred care model at the Galway Clinic and the related financial outcomes.
Capital works
The directors point out that to date the shareholders have not taken a dividend from the business. At the end of December last, the clinic had accumulated profits of €96.2 million. The firm’s cash increased from €22.89 million to €29.9 million.
Last year the clinic spent €6.5 million on capital works compared to €5 million in 2017.
Pay costs of €35.3 million include €568,364 in agency and temporary staff, with recruitment and training totalling €974,809.
Key management personnel, including directors, were last year paid €1.3 million. Directors were paid €91,409.
The clinic’s profits last year take account of non-cash depreciation and amortisation costs of €9.1 million. Medical and pharmaceutical supplies cost €27.5 million.
The clinic recorded profits after tax of €5.1 million after paying corporation tax of €1.2 million.
