According to accounts just filed, the hospital, which opened in June 2004, made a profit of almost 1.5m compared to a loss of 3.2m on the previous year.

However, it still has accumulated losses of almost 7.3m.

The brainchild of Jimmy Sheehan, the founder of the Blackrock Clinic, the Galway clinic has struggled to trade profitability with many of its patients being treated at a significant loss.

Sheehan has maintained, however, that the root of the clinic's troubles lay with its arrangement with the VHI, claiming that the health insurer was failing the cover the full cost of patient care at the clinic, affetcing profits.

However, it is understood that the clinic turned a corner in 2006 with a rationalisation plan, which saw 18 staff laid off, and new management headed by Pairic Bergin, a former executive with ESB International.

But the accounts indicate that the company remains nervous about its arrangement with the VHI, highlighting its continuing reliance on patients with VHI cover as a potential future financial risk.