Stormont impasse ‘primary driver’ for £2m pre-tax loss at private health company
A PRIVATE healthcare group has said the political stalemate at Stormont has led to a pre-tax loss of £2m in its most recent accounts.
3fivetwo Medical Group, which includes Kingsbridge Private Hospital in south Belfast and Origin Fertility Care, formerly carried out a large number of procedures for the NHS as it worked to reduce waiting lists.
In its accounts for the year ending March 31, 2017, it reported a slight fall in turnover from £31.3m to £31m.
But an operating loss of nearly £338,000 for the year before grew into a loss of £2.03m. Staff numbers were steady at 301.
Meanwhile, Kingsbridge Private Hospital, which employs 102 people, reported sales of £18m it its accounts for the year ending March 31 2017. But it went from
Downturn: Mark Regan
pre-tax profits of £1m a year earlier to a loss of £91,000.
A strategic report filed with the results said that the group “had suffered a detrimental impact as a result of the vagaries of the public sector in Northern Ireland and the Republic over the last two years”.
Mark Regan, chief executive of Kingsbridge Hospital and development director of 3fivetwo Group, told the Belfast Telegraph: “The historical political issues at Stormont stretching back to 2016 resulted in a substantial downturn in outsourcing of public sector healthcare contracts.
“This was the primary driver for the losses shown in that year.
“In the intervening 12-month period the company continues to very successfully implement its strategy to rebalance the business, focusing on predominantly private healthcare markets and reduce its reliance on the public sector work.
“The company’s hospital group continues to experience an extremely healthy growth in all its clinical services, both in Belfast and the Republic of Ireland.”
Last week Kingsbridge announced it had won a new contract to run a clinic in Belfast for healthcare giant Bupa after a company linked to its former operators went into administration.
Kingsbridge has moved the clinic, formerly run by Bio-Kinetic Healthcare, from Great Victoria Street to its own site on the Lisburn Road.
Kingsbridge said that the growth in capacity following relocation could mean a doubling in turnover at the hospital over the next 18 months.
A spokeswoman said: “The Bupa contract is now contracted to Kingsbridge Private Hospital as of last week.
“Biokinetic Healthcare is no longer trading since the administration process concluded. All new Bupa contracts are directly with Kingsbridge for health screening, private GP and muscle and joint assessment centres.”
In January Kingsbridge Private Hospital said it had seen a tenfold rise in patients travelling from the Republic for treatment, with 162 procedures carried out during the month.