January 25, 2006

Next Step---Growth

I think it is significant that my comments for this meeting are brief. It makes me feel good that after only a few meetings, the need to address and explain issues has decreased. You have heard the management reports about our progress on many fronts and that we have been consistently profitable for the first half of this fiscal year. We have stabilized our financial condition and are continuing to deliver quality health care. We were able to share some of our profits with our employees without jeopardizing our long-term security. Greater financial improvement is anticipated for the second half of the fiscal year. I see signs of energy, enthusiasm and a positive attitude throughout the hospital.

Most of our energy and planning has shifted from cost containment to growth. We are actively and successfully recruiting physicians and other skilled technical personnel. Even significant capital outlays are back on the agenda.

This transition to growth arrived without fanfare and was the result of a strong team working hard to do the right things in the right way and doing them consistently. For several months now I have been predicting that when we look back at the end of this fiscal year, we will be pleased if not surprised at how far we have come. It looks like my prediction is turning out to be right.