The competition watchdog is running its eyes over Bon Secours' bid for a Limerick hospital

The Irish healthcare giant has reportedly made a €15 million bid for Barringtons private clinic.

By Conor McMahon Deputy editor, Fora

IRELAND’S LARGEST PRIVATE healthcare provider has made a bid to buy Barringtons Hospital in Limerick.

Bon Secours Health System, which is based in Cork, has agreed to buy the private hospital for a reported €15 million – although the company has not confirmed the price.

The Competition and Consumer Protection Commission (CCPC) has been notified of the proposed acquisition and has launched an initial investigation to work out if the deal substantially lessens competition in the sector.

Bon Secours already operates a healthcare facility in Limerick city on Harvey’s Quay. It also runs private hospitals and other facilities in Cork, Dublin, Galway and Tralee.

barringtons-hospital-cancer-misdiagnosis Barrington's Hospital in Limerick
Source: Google Maps

Eyeing up

Bon Secours – owned by the religious group, Sisters of Bon Secours – has been reportedly interested in purchasing Barringtons for some time.

In April, the Limerick Leader reported that the hospital’s managing director Denis Calahane was in discussions with the healthcare group about a potential sale.

The group’s most recently filed accounts show that it made a profit of €1.9 million in 2014, down roughly 65% from €5.4 million for the same 12-month period the year before.

Barringtons Hospital has more than 50 beds and employs over 100 staff and 50 consultants. Its founder and current owner is Paul O’Byrne, who is also the hospital’s general consultant surgeon.

Accounts for the year ended 31 December 2014 show that turnover for Barringtons Hospitals Ltd increased 3.3% to €12.6 million. The hospital generated a profit after taxation of €483,667, up from €357,947 in 2013.

Net assets amounted to €2.1 million in 2014.