Limerick hospital boosts Bon Secours Health Group revenue

Significant mobilisation costs associated with the opening of the new Bon Secours 170-bed hospital at Ballysimon on the outskirts of Limerick city last year contributed to pre-tax losses at the group increasing more than four fold to €20.5m last year.

New accounts filed by the Bon Secours Health System Company show that the new hospital also contributed to group revenues rising by €25.1m from €478.9m to €503.9m.

The pre-tax loss of €20.45m followed a pre-tax loss of €4.77m in 2024.

Before the opening of the Bon Secours Hospital Limerick (BSHL) in September 2025, Bon Secours already operated acute hospital facilities located in Cork, Dublin, Galway, Limerick and Tralee.

The Limerick hospital is the first new acute hospital built in Ireland in nearly two decades and represents one of the largest healthcare investments ever made in the Mid-West region.

The directors state that the revenue increase “was driven by a significant increase in both inpatient and outpatient activity across the group”.

In their report, the directors state that the €20.4m loss was driven by a number of factors.

They state that this included an impairment charge of €4.1m arising from write down of IT assets; significant mobilisation costs associated with the opening of BSHL and restructuring costs as part of a programme to align non-clinical resources, administrative functions and support structures with the future needs of the enlarged hospital network.

The group recorded an operating loss of €13.77m and interest costs of €7.62m, off-set by a €881,000 share in profit from a joint venture, contributed to the pre-tax loss of €20.54m.

On business developments during the year, the directors point to the opening of BSHL in September 2025 which they say was just 26 months after construction contracts were signed.

The directors state that the hospital’s successful delivery on time and within budget “represents a major milestone for the group and required substantial investment in people, systems, infrastructure and operational readiness prior to opening of the hospital”.

The directors state that mobilisation costs incurred in advance of the opening of BSHL included the recruitment and training of clinical, nursing, administrative and support staff.

The mobilisation costs, according to the directors, also include the commissioning of multiple operating theatres and clinical departments and the establishment of appropriate governance, quality and patient safety procedures.

The directors state that these costs were incurred before BSHL reached normal operating capacity reflecting the board’s decision to prioritise patient care, clinical quality and operational readiness over short-term profitability during the opening phase.

Cash generated by the Bon Secours Health Group last year totalled €25.2m while cash outflows on capital improvements totalled €100m and this followed a capital spend of €124.8m in 2024.

The directors state that the capital spend reflects the group’s continued investment in its hospital network, clinical infrastructure and digital systems.

The opening of the new BSHL coincided with the book value of the group’s tangible assets increasing from €386.52m to €493.25m.

Payroll costs last year increased from €238.3m to €261.4m and the numbers employed by the group increased by 135 from 4,296 to 4,431 and the directors state that the staff work with 500 medical consultants “to provide advanced medicine and exceptional care to patients”.

During the year, borrowings previously provided by a syndicate of lenders, including AIB and Bank of Ireland, were repaid in full and the group entered into an affiliate loan agreement with US parent, Bon Secours Mercy Health (BSMH) for €332m and is repayable in 2025.

The accounts show that at the end of December shareholder funds totalled €150.6m that included accumulated profits of €91m.

Reporting by Gordon Deegan