FMC Board of Trustees Meeting – April 1st 2026
Fallon Medical Complex, Inc.
Board of Trustees Meeting
Wednesday, April 1, 2026
MEMBERS PRESENT
• Curt Arnell, President
• Erin Lutts, Vice President
• Evelyn Neary, Secretary
• Elaine Stanhope, Board Member
• Michele Gray, Board Member
• Del Espinosa, Board Member
• Dru Burk, Board Member
OTHERS PRESENT
• David Espeland, CEO
• Marjorie Losing, CFO
• Heather Schwindt, Recorder
• Lacee Janz, Laboratory Manager
• Judy McWilliams, QA/Infection Control/Risk Management/Emergency Preparedness
Call to Order
Curt Arnell called the meeting of the FMC Board of Trustees to order at 5:32 p.m. in the FMC Community Room.
Public Input
There was no public input.
Approval of Minutes
No additions or corrections to the March 4, 2026 Board Minutes as distributed. Del moved to adopt the approval of minutes. Erin seconded the motion. All aye, 0 nay. Minutes stand approved as written.
Manager Reports
Lacee Janz, Laboratory Manager
Lacee reported to the Board that she has been with FMC for 25 years and discussed staffing her department despite reduced clinic volume compared to previous years.
She reviewed the new laboratory equipment that the Board recently approved for financing and explained the purpose and capabilities of the equipment in detail.
Lacee also reviewed participation numbers from the mini health fairs and noted that the annual community health fair is scheduled for April 29.
All quality assurance reports are current. Lacee will be attending training in California later this month, funded by the equipment vendors, to learn advanced maintenance and operational procedures for the new instruments to maximize their longevity and performance.
Judy McWilliams, QA/Infection Control/Risk Management/Emergency Preparedness
Judy provided a detailed report regarding emergency preparedness drills conducted during the year and discussed lessons learned from those exercises.
She reported that many federal reporting programs have been discontinued, resulting in fewer reporting requirements. However, she continues to track the data in the event future funding opportunities require historical reporting information.
The HCAHPS patient satisfaction survey continues to be administered and analyzed by a third-party vendor. FMC continues to experience strong patient participation in the survey process.
Judy discussed recent legislation addressing workplace violence and noted that many incidents are not formally reported because reporting often requires law enforcement involvement. She stated that most reported incidents involve patient-to-patient interactions.
Judy reported that she is working with department managers to improve quality assurance processes. She will continue providing guidance and support but will no longer complete departmental quality assurance activities on behalf of managers.
FMC has submitted applications for two LEAN studies this year. The studies would evaluate workflow processes in the Business Office and Dietary Department. Acceptance decisions are expected closer to June. If selected, student teams will spend one week evaluating operations and a second week developing recommended implementation plans.
Financials
Business Office Update
Marjorie reported issues with the patient portal that resulted in some laboratory charges being billed directly to patients when they should have been billed to employers. The issue is currently being investigated with WixCorp.
Katie remains out of the office with no confirmed return date.
Uprise Consulting
Uprise Consulting has agreed to a two-year contract to bill FMC’s commercial insurance payers at 5% of net revenue.
This arrangement is more favorable than a flat-fee model unless the 5% exceeds $12,000, at which point a flat rate will apply.
FMC has also begun its six-month Medicare and Medicaid billing contract with Uprise. The agreement includes staff training and operational improvement recommendations designed to strengthen billing processes and reduce future claim backlogs.
iVitaFi Financing Program
FMC received written notice from iVitaFi on March 30, 2026, that the company will stop approving new lines of credit after April 3, 2026.
No company representatives contacted FMC directly regarding the decision. Patients who already have approved financing arrangements will be grandfathered under the existing program.
Because FMC’s billing and collections policy contains references to iVitaFi and patient financing options, policy revisions will be necessary.
Since July 2025, FMC has worked with patients to establish payment arrangements that would allow financing balances to remain manageable before the twelve-month repayment deadline. The discontinuation of new financing approvals will directly affect some patients despite efforts by both FMC and the patients involved.
FMC plans to notify affected patients as quickly as possible.
February Financials
February activity included 8 inpatient days and 50 skilled days.
Financial Results:
• Gross Patient Revenue: $1,056,000
• Net Operating Revenue: $1,037,000 ($132,000 above budget)
• Expenses: $1,087,000 ($54,000 above budget)
• Operating Loss: $50,000 ($77,000 favorable to budget)
• Non-operating Income: $81,000
• Net Income: $31,000 ($101,000 favorable to budget)
Marjorie noted that some coding errors caused expenses that should have been recorded in January to be recorded in February.
Year-to-Date Results:
• Gross Patient Revenue: $8.008 million ($355,000 favorable to budget)
• Net Operating Revenue: $8.3 million ($504,000 favorable to budget)
• Expenses: $8.7 million ($172,000 favorable to budget)
• Operating Loss: $429,000 ($677,000 favorable to budget)
• Non-operating Income: $718,000
• Net Income: $289,000 ($900,000 favorable to budget)
Year-to-Date Statistics:
• Inpatient days remain below budget.
• Intermediate Swing Days remain below budget.
• Skilled Swing Days: 183 (Budget: 126)
Marjorie noted that the higher skilled swing day volume will reduce the cost per patient day and likely result in additional Medicare repayment obligations.
Ancillary Services:
• Emergency Room services are on budget.
• Procedure and Observation services are ahead of budget.
• Lab and Blood Bank services are below budget.
• EKG, Radiology, MRI, and Ultrasound are ahead of budget.
• Mammography and CT are slightly below budget.
• Physical Therapy and Occupational Therapy remain ahead of budget.
• Rural Health Clinic visits are approximately 150 visits below budget.
• Outpatient encounters remain ahead of budget.
Year-to-date change in cash equivalents was ($1,042,000). Marjorie attributed the decrease primarily to construction expenses, Medicare repayments, and the timing of mill levy funding.
Old Business
Project Updates
The construction project has been completed, with the final walkthrough and punch list scheduled for April 2, 2026.
The County Commission has approved all additional project work.
FMC will receive a one-year warranty covering the completed improvements.
Approximately $160,000 remains in residual mill levy funds. FMC is working with its engineering consultant to evaluate additional facility improvement needs, including potential replacement of boilers, water heaters, and chillers. Cost estimates are being prepared.
The lift dedication ceremony honoring Betty Mueller is scheduled for April 8, 2026.
Health Insurance Update
The County Insurance Committee selected the Montana Association of Counties (MACo) health plan, and the County Commissioners agreed to continue funding 40% of employee health insurance costs for at least the first six months of the new plan.
Funding levels will be reevaluated prior to the next open enrollment period in November 2026.
Initially, employees will have one health plan option available. In future enrollment periods, up to six plan options may be offered.
Additional changes include:
• Introduction of a Health Savings Account (HSA) option
• Availability of an Employee Assistance Program (EAP)
• Expanded supplemental insurance options
MACo utilizes Rocky Mountain Biometrics to coordinate laboratory testing associated with employee health plans. While FMC’s laboratory will continue collecting specimens, Rocky Mountain Biometrics will process the laboratory work.
Employer-sponsored life insurance coverage will increase from $10,000 to $25,000 for employees enrolled in the health plan, with supplemental coverage options available.
Existing claims under the EBMS self-funded plan will continue to be processed for up to 12 months and funded through the remaining EBMS plan balance.
New Business
Provider Credentialing
David presented a list of new and renewal providers for credentialing.
Elaine made a motion to approve all candidates presented for credentialing. Michele seconded the motion. All aye, 0 nay.
All listed providers were approved for credentialing.
Curt closed the regular meeting and entered Closed Executive Session.
Closed Executive Session
The Board Chair closed the Executive Session upon completion.
The Board adjourned after completing all agenda items.
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Curt Arnell, President Heather Schwindt, Recorder and Transcriber
