Australian healthcare service provider Healthscope Ltd (ASX:HSP) has announced a 37 per cent rise in annual profit and projects solid demand and growth in the year ahead.

Net profit climbed to $99.282 million in 2009/10 from 37.3 per cent on the previous year.

Profit before non-recurring items was $102.8 million, up 16.6 per cent, while revenue was $1.844 billion, up 11.5 per cent in the year, Healthscope said in a statement issued on Thursday.

Earnings before interest and tax (EBIT) were $191.9 million, up 9.7 per cent from $175.0 million in 2008/09.

Healthscope said it expected a continuation of growth in demand in 2010/11.

"The health care reforms proposed by the Federal government primarily impact the public health system and are not expected to change the strong industry fundamentals driving the demand for private hospital services," the company said.

Healthscope declared a fully franked final dividend of 12 cents a share for a total dividend of 23.5 cents, 9.3 per cent up on fiscal 2009.

Chief executive Bruce Dixon said "The positive momentum evident in the first half continued into the second half of FY 2010, with all of our businesses delivering strong results for the year."

"Strong demand, together with the ongoing benefits of our hospital expansion program, mean that Healthscope's hospitals business is well positioned for growth in FY 2011," he said.