Losses go on at private hospital
A private hospital has thrown its aspirations of breaking even next year out of the window as it continues to make significant losses despite seeing more patients.
KIMS Hospital in Maidstone suffered pre-tax losses of £15.9 million in the year to April, up 4%, despite increasing revenues by 86% to £16.4 million, according to its unpublished latest accounts, seen by our sister publication Kent Business.
The institution, which opened two years ago, did not rule out seeking further money to help it grow, even though a restructure in November 2014 injected £20 million.
However, the health of the business improved, with underlying losses before interest, taxes and other charges improving by 23% to £7.2 million.
Chief executive Simon James said the hospital is still in a “growth and investment phase” and is working on a five- to sevenyear timeline towards profitability. He put the sustained losses down to “indirect costs” and new accounting standards.
He said revenues “continue on an upward trajectory” and investors were happy.
The hospital, based on Kent Medical Campus near Junction 7 of the M20, increased overall patient numbers by 71% in the year to April, treating 2,700 private cases, up 69%, and 2,100 NHS cases, up 75%. Mr James said increasing treatments was key to reaching profitability.
Demand has come partly from the NHS e-Referral system. The hospital used an average of 22.5% of beds, up from 12% the previous year, while operating theatres worked at 36% of capacity, compared with 20% the previous year.