UPMC is selling Beacon Hospital in Dublin and “relinquishing all management responsibilities” at the hospital, Joel Yuhas, president and CEO at the hospital, confirmed Monday.
RTE, Ireland’s national public service broadcaster, reported on its website Monday that billionaire businessman Denis O’Brien will take over the hospital after Ulster Bank agreed to sell an estimated $137.4 million “in debts associated with the hospital.”
A nearby cancer center run by Pittsburgh-based UPMC will not be affected by the transaction.
The report said UPMC had been trying to restructure the hospital’s debt for 15 months after losses equal to $13.5 million in 2012 and $13.2 million in 2011. The nine-floor hospital has 214 beds and employs 600.
Mr. Yuhas, in a statement, said UPMC had indeed been working to restructure the debt incurred in the development of the hospital in 2006, two years before UPMC acquired it.
“A generous offer was made, but ultimately Ulster Bank/RBS elected to sell the Beacon Hospital debt — which preceded UPMC’s involvement — to Irish businessman Denis O’Brien,” he said.
Mr. O’Brien, he continued, “clearly indicated his intent to own, control and manage Beacon Hospital.” The ownership exchange will take place Monday.
Mr. Yuhas said in his statement that, “UPMC Ireland remains committed to its mission to provide world-class, high-quality healthcare in Ireland and will seek partners that share this vision.”
UPMC has long defended its international ventures as a means to generate revenue that would benefit its local operations. In a media briefing last May, Charles Bogosta, president of UPMC’s international and commercial services, said UPMC Beacon was by then breaking even, while its other overseas initiatives were profitable.
In addition to the Ireland operations, UPMC has holdings or provides consulting or clinical management services in Italy, the United Kingdom, Kazakhstan, Singapore, China and Japan.
Steve Twedt: email@example.com or 412-263-1963.