FMC Board of Trustees Meeting – August 6th 2025
FALLON MEDICAL COMPLEX, Inc.
BOARD OF TRUSTEES MEETING
Wednesday August 6, 2025
MEMBERS PRESENT ABSENT
Curt Arnell, President Evelyn Neary, Secretary
Erin Lutts, Vice President Dru Burk, Member
Elaine Stanhope, Member, via phone
Michele Gray, Member
Del Espinosa, Member
OTHERS PRESENT
David Espeland, CEO Donna Halmans, HIM Manager
Marjorie Losing, CFO Judy McWilliams, QA Manager
Heather Schwindt, Recorder Susan Stevens, IT/Privacy Manager
I. CALL TO ORDER
Curt called the meeting of the FMC Board of Trustees to order at 5:30 p.m. in the FMC Community Room.
II. PUBLIC INPUT – There was no public input.
III. APPROVAL OF MINUTES
One correction regarding the placement and verbiage of Executive Session was noted to be incorrect. Erin moved to adopt the approval of the minutes upon correction. Del seconded the motion. All aye, 0 nay. Minutes stand approved as written.
IV. MANAGER REPORTS
A. Donna Halmans, HIM Manager: Donna reported updates regarding her staffing and noted not a lot of changes in coding, but there are discussions to update to ICD11, which would add codes that may be even more descriptive and precise than the current ICD10 codes. Donna explained that ICD codes are used for reporting statistics as well as insurance billing purposes. ICD10 has been in place since 2015, and annually, codes are added or deleted from the system.
B. Judy McWilliams, QA/ Risk Manager: Judy reported to the board that she has a new staff member who has a similar background to her own in the lab so she comprehends all that the job entails. Judy further reported that federal QA funding was cut and it may affect how we track and submit data. Judy reviewed the HCAHPS, QHI and SDOH data in detail with the Board.
C. Susan Stevens, IT/Privacy Manager: Susan reported to the board the updates in recruitment and credentialing with our new credentialling company. She discussed how she monitors and trains staff regarding HIPAA. We passed the 2024 Interoperability inspection which means that we will get a 1% bump back on our cost report. Susan also updated the Board regarding the patient portal being available to Rehab patients and some of the challenges with having to add dates to hold the spot open for future visits. Arctic Wolf cybersecurity is being implemented for monitoring spam emails to staff. Susan noted that she has a new staff member who will be starting in IT next week. Susan noted that TruBridge is offering a cybersecurity package that includes AI technology and noted the concerns are how one AI program interacts with another and how that can affect HIPAA.
V. FINANCIALS
A. Paylocity Update: Margie reported to the Board that we had our first successful payroll. There are still a few bumps with time and labor. Margie is still working with Paylocity on the General Ledger.
B. Eide Bailly Engagement Letter: Marjorie received the annual engagement letter and presented it to the board. Discussed the pricing and reminded the Board that we can shop for a new audit company if they are interested. Erin made a motion to approve the engagement letter. Michele seconded the motion. All aye, 0 nay. We will use Eide Bailly for the next FY audit & cost report.
C. June Interim Financials: 12 Inpatient days, 19 Skilled days. Gross Patient Revenue $903,000, $55,000 over budget. Net Operating Revenue $815,000, $58,000 under budget. Expenses $1,050,000, $5,000 under budget, Operating Loss $235,000, $53,000 on the negative side of the budget. Non Operating Income $210,000. Net Loss $25,000, $80,000 on the positive side of the budget. YTD Gross Patient Revenue $11.1 M, $784,000 on the positive side of the budget. Net Operating Revenue $13.1M, $2.5M on the positive side of the budget. Expenses $12.8M, $40,000 on the positive side of the budget. Operating Income $390,000, $2.6 M on the positive side of the budget. Non-Operating Income $848,000, Net Income $1.2M, $2.5M on the positive side of the budget. Stats Inpatient days are ahead of budget. Swing days are ahead of budget. We are 6 stays below budget for Medicare skilled days. Ancillary services are below budget. Lab and Blood Bank below the budget. EKG Radiology, ultrasound and MRI are below budget. CT is at budget. Mammography is ahead of the budget. PT and OT ahead of budget. RHC visitsare slightly below budget. Outpatient slightly below budget. Change in cash equivalents is a positive $436,000.
VI. OLD BUSINESS
A. Project Updates: The Commissioners have signed the substantial completion certificate for the glycol pump replacement project. It will be finalized after the gas line project is complete when they can run hot glycol throughout the facility again. There have been discussions regarding adding a gas line for the kitchen for fryers, but we may go electric depending on cost. We will have the drawings completed for the renovation project by August 7 and we are hoping it be advertising for bids on August 15, 22, and 29, with a mandatory walkthrough for bidders on August 26. The bid opening will be on September 11 with the hope that the renovation will be completed by March 31, 2026. The architect estimated that the renovation project will cost $611,000.
B. Wibaux Clinic: We received a letter from Wibaux Clinic to retrieve our property as they have found a new tenant who will focus on mental health issues. David, Judy and Maintenance picked up everything and returned the keys.
V VII. NEW BUSINESS
A. Credentialing: The Board was presented with a list of providers to credential. Michele made a motion to approve the credentialling list as presented. Erin seconded the motion. All Aye, 0 nay.
The Board adjourned their regular session having completed the agenda.
VIII. CLOSED EXECUTIVE SESSION
________________________________
Curt Arnell, President
Heather Schwindt, Recorder and Transcriber
