The Beacon Medical Group have announced that they have implemented six redundancies as they prepare for recession. All of the job losses were administrative staff from the head office. The redundancies in the Beacon Medical Group were as a result of a company costs review.
Further cost cutting measures aimed at keeping the Group on course through the recession include all senior management taking pay reviews.
No job cuts have been implemented in any of the Beacon Medical Groups Medical Facilities which employ 550 staff.
In November 2008 the Beacon Group raised €20 million by selling 20 half percent shares in the Beacon Hospital Sandyford for €1 million each. The shares were offered to a pool of approximately 180 Consultants. All the Shares of the Beacon Medical Group remain with Mark Redmond, Michael Cullen and Paddy Shovlin. They did sell a 25% stake in the operating company that runs the Sandyford unit to the University of Pittsburg Medical center for more that €50 million.
The Beacon Medical Group insist that they are still on course to build the three co-located hospitals they won the HSE tenders for. The locations are Beaumont, Cork and Limerick. Although they have won the tenders no contracts have yet been signed with the HSE.
Earlier in 2008 they suffered a setback to their plans to build a womens, childrens and maternity hospital beside the existing Beacon hospital. An bord Pleanala refused planning permission due to inadequate water and drainage infastructure in the area.
The Beacon Medical Group are to be commended on their handling of preparing for the impending financial crisis the country faces. Implementing pay cuts for senior management before touching their front line staff shows a strength of leadership that many others in all industries would do well to learn from.