FMC Board of Trustees Meeting – May 6th 2026
BOARD OF TRUSTEES MEETING
Wednesday, May 6, 2026
I. MEETING ATTENDANCE
Members Present
- Curt Arnell, President
- Evelyn Neary, Secretary (via phone)
- Elaine Stanhope, Board Member
- Michele Gray, Board Member
- Del Espinosa, Board Member
- Dru Burk, Board Member
Members Absent
- Erin Lutts, Vice President
Others Present
- David Espeland, CEO
- Johnna Koenig, DI Manager
- Marjorie Losing, CFO
- Heather Schwindt, Recorder
II. CALL TO ORDER
The meeting of the Fallon Medical Complex Board of Trustees was called to order by Curt Arnell at 5:37 p.m. in the FMC Community Room.
III. PUBLIC INPUT
There was no public input.
IV. APPROVAL OF MINUTES
A scrivener’s error was noted in the April 1, 2026 meeting minutes.
- Motion: Elaine Stanhope moved to approve the minutes with correction.
- Second: Del Espinosa
- Result: Motion passed unanimously (All ayes, 0 nays).
The minutes were approved pending correction.
V. MANAGER REPORTS
A. DI Department Report – Johnna Koenig, DI Manager
Johnna Koenig reported on departmental staffing, noting all staff are contract employees with long-term tenure ranging from 3 to 13+ years. Although staff are not local to Baker, they continue to support FMC operations.
She provided updates on:
- Radiology vendor transition and resulting workflow changes
- Improved turnaround time for imaging reads (often within one hour)
- Increased service utilization following addition of weekly MRI truck visits
- Marketing strategies to better align imaging services with providers
- Potential addition of a DXA scanning machine for bone density and body composition services
- Medicare covers bone density screening every two years
- Body composition scanning may be offered as a cash-pay service
- Financial feasibility and CPT code review in collaboration with Marjorie Losing and Eide Bailly
- Strategy to remain competitive in imaging services within the region
B. Human Resources Report – Heather Schwindt, HR Director
Heather Schwindt reported on departmental and organizational HR updates, including:
- Nearly three years of service with FMC
- Stabilization of EVS staffing turnover
- Continued high turnover in Dietary services, consistent with broader healthcare trends
- Proposal to rejoin Associated Employers for Montana-specific HR support
- Includes training discounts and HR project assistance
- Progress on annual open enrollment program
- HR goals focusing on employee engagement and retention strategies with department managers
VI. FINANCIAL REPORTS
A. March Financial Summary
Key financial highlights for March:
- Inpatient days: 20
- Skilled days: 39
- Gross Patient Revenue: $1.1M (above budget by $196,000)
- Net Operating Revenue: $1.2M (above budget by $238,000)
- Expenses: $1.028M (below budget by $115,000)
- Operating Income: $212,000 (above budget by $350,000)
- Net Income: $145,000 (above budget by $223,000)
Year-to-date summary:
- Gross Patient Revenue: $9.1M (above budget by $551,000)
- Net Operating Revenue: $9.6M (above budget by $743,000)
- Expenses: $9.8M (above budget by $280,000 savings)
- Net Income: $428,000 (above budget by $1.1M)
Operational notes:
- Skilled swing bed utilization exceeded budget
- Increased ancillary service volume in ER, procedures, observation, radiology, MRI, ultrasound, and PT
- Below-budget performance in lab, blood bank, mammography, CT, and RHC visits
- Outpatient visits exceeded projections by 250
- Cash position decreased by $1.06M due to accounts receivable, mill levy timing, and construction costs
B. Uprise Consulting Update
- Continued work on Medicare and Medicaid claim backlog
- No billing for March as a courtesy
- Additional staff support added at no cost until filing risk is reduced
- Commercial insurance billing to begin in June (for May services)
- Focus on root cause analysis and staff training to prevent future filing issues
C. Able Pay Program
- Replacement under consideration following discontinuation of iVitafi
- Program similar structure with 30% fee
- Enrollment setup expected within 2–3 weeks
- Requirement: program must be offered at point of service
- Update to be provided at next meeting
D. FY 2027 Budget Planning
- FY 2027 budget to be presented at June meeting
- ORCA group discussed potential revenue rate adjustments
VII. OLD BUSINESS
A. RHTP Funding Update
David Espeland provided an update on RHTP funding:
- Potential $350,000 flat-rate stipend for Critical Access Hospitals
- Final use restrictions may be determined by Center of Excellence guidelines
- Administration will continue monitoring funding requirements and reporting updates
VIII. NEW BUSINESS
A. Mechanical Equipment Review
- Equipment lifecycle and replacement spreadsheet reviewed by board
- Prioritization was color-coded based on urgency
- Coordination ongoing with County Commission for mill levy funding allocation
- Planning underway for future capital replacement needs
B. Provider Credentialing
- List of new and renewing providers presented for approval
- Motion made by Del Espinosa to approve credentialing list
- Seconded by Elaine Stanhope
- Motion passed unanimously (All ayes, 0 nays)
- All providers approved for credentialing
IX. EXECUTIVE SESSION
The Board entered Closed Executive Session following completion of agenda items.
After conclusion of Executive Session, the regular meeting was closed.
X. ADJOURNMENT
The Board adjourned the meeting upon completion of all agenda items.
SIGNATURES
Curt Arnell, President
Heather Schwindt, Recorder and Transcriber
