St. Mary’s is a not-for-profit, inner city community hospital located in a poor neighborhood of a major
metropolitan city in the Midwest. Sponsored by a religious order and part of a small hospital system, St. Mary’s has served its community since 1890. During the late 1980’s the hospital experienced declining profitability. In late 1989, the board hired Mr. Charles Windsor, a nationally known and respected hospital administrator, to be CEO. It is now December 1993. You have just joined the board of St. Mary’s Hospital and have been presented with the summary financial statements and operating statistics for the hospital and for a peer group of hospitals in the region. You are to assess the performance of St. Mary’s relative to the benchmarked data under its new management team. Prepare an executive summary to present orally to the class with your evaluation of managements financial performance and your recommendations for or against retention of the current management team. Be sure to present your final analysis relative to the relevant categories of financial performance.