FMC Board of Trustees Meeting – February 4th 2026
Fallon Medical Complex, Inc.
Board of Trustees Meeting
Wednesday, February 4, 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
• Spencer Fey, FNP
• Jim Cuisimano, Big Sky Investments
Call to Order
Curt Arnell called the meeting of the FMC Board of Trustees to order at 5:30 p.m. in the FMC Community Room.
Public Input
Spencer Fey appeared before the Board to discuss his experience at FMC and to notify the Board that he has accepted a position at another facility out of state. Spencer then left the meeting.
Approval of Minutes
No additions or corrections to the January 7, 2026 Board Minutes as distributed. Elaine moved to adopt the approval of minutes. Dru seconded the motion. All aye, 0 nay. Minutes stand approved as written.
Big Sky Investments
Jim Cuisimano
Jim joined the meeting and distributed investment packets to the Board. He reviewed the packet in detail, explaining FMC’s current investments, investment growth, and the types of investments being utilized.
Jim asked whether the Board preferred a more aggressive investment strategy or wished to maintain the current approach. The Board expressed satisfaction with the current investment strategy and had no further questions regarding his reports. Jim then left the meeting.
Financials
December Financials
Marjorie discussed the December financials in detail. December had 18 inpatient days and 22 skilled days.
Financials:
• Gross Patient Revenue: $954,000 ($22,000 under budget)
• Net Operating Revenue: $949,000 ($53,000 under budget)
• Expenses: $1.1 million ($3,000 under budget)
• Operating Loss: $191,000 ($50,000 negative to budget)
• Non-operating Income: $31,000
• Net Loss: $159,000 ($82,000 negative to budget)
Year-to-Date:
• Gross Patient Revenue: $5.6 million ($115,000 under budget)
• Net Operating Revenue: $6.0 million ($88,000 positive to budget)
• Expenses: $6.5 million ($195,000 positive to budget)
• Operating Loss: $553,000 ($284,000 positive to budget)
• Non-operating Income: $570,000
• Net Income: $16,000 ($476,000 positive to budget)
Year-to-date statistics:
• Inpatient Days: 61 (Budget: 116)
• Swing Days: 3,100 (slightly below budget)
• Skilled Days: 78 (Budget: 96)
Ancillary Services:
• ER, Procedure, and Observation were ahead of budget.
• Lab and Blood Bank were below budget.
• EKG, Radiology, MRI, and Ultrasound were ahead of budget.
• Mammography and CT were slightly below budget.
• Physical Therapy and Occupational Therapy were ahead of budget.
• Rural Health Clinic visits were slightly below budget.
• Outpatient encounters were ahead of budget by 120 visits.
Year-to-date change in cash equivalents was ($447,000), driven largely by repayment to Medicare during the previous month.
Business Office Update
Marjorie informed the Board that Katie is unexpectedly absent and staff are working through daily tasks to ensure billing operations continue as smoothly as possible. Voicemails are being rerouted.
Board members were asked to encourage patience among community members if concerns arise and to direct questions to Marjorie.
Outsourcing Medicare and Medicaid Claims
Marjorie and Katie are working with David to potentially outsource Medicare and Medicaid claims processing to bring claims up to date.
As part of the proposed agreement, the contractor would provide a clean claim report and train FMC staff to remain current with future claims. The proposed contract term is six months. The first three months would focus on catching up outstanding claims, while the final three months would focus on staff training related to denials and other complex aspects of claims processing.
Lab Instrument Purchases
Marjorie reviewed discussions from the prior budget cycle regarding financing laboratory equipment purchases through a loan. The equipment needed to be obtained with serial numbers before being included in the loan documents.
FMC was offered a 4% interest rate that is locked through July. Marjorie plans to present a resolution for Board consideration at the next meeting.
Old Business
Casper Medical Imaging / Real Radiology Update
FMC has negotiated user access to the Casper Medical Imaging system. Real Radiology contracts through Casper but operates on a separate system. Access through Real Radiology has now been finalized.
Project Updates
Facility improvement projects continue to move forward smoothly.
The clinic lift project is nearly complete. David approached the County Commission seeking approval to dedicate the lift in honor of Betty Mueller, and the Commission approved the request.
The flooring project in Physical Therapy experienced issues with portions not laying flat and will be redone. Door installations are still pending and are expected to arrive at the end of February. Sletten remains optimistic that the overall project will be completed in early to mid-March.
Health Insurance Update
The County has issued a Request for Information (RFI) to insurance providers while evaluating alternatives to its current self-funded health insurance plan.
The County is exploring fully funded options. FMC may be allowed to remain on the County plan, although employee costs are expected to increase. Responses to the RFI are due in March.
FMC is also obtaining a quote from MHN, and MaCO has presented a package to the County Insurance Committee. As discussions continue, the Board may be asked to consider FMC’s contribution levels toward employee health insurance premiums.
New Business
Proposed Lease for FMC
David reviewed the current lease agreement between FMC and Fallon County, along with proposed revisions.
The proposed changes are not substantive and primarily include:
• Removing Home Care as an FMC service since it is no longer offered
• Updating sublease language
• Correcting typographical errors
• Updating casualty insurance coverage amounts to reflect current coverage levels
• Updating Commissioner names to reflect the current County Commission
The Board was asked whether any additional revisions should be presented to the Commission. No additional changes were proposed.
If the Commission does not request modifications, a final document will be returned for approval. Once executed, the lease will remain in effect for five years.
Montana Rural Health Transformation Program
Montana was awarded $233 million from CMS for rural health transformation initiatives.
The Montana Department of Public Health and Human Services (DPHHS) has been tasked with allocating the funds and assembling stakeholders from across the state to determine how the funds should be used.
A planning meeting was held on January 22 to discuss the scope of work. FMC may receive some funding, although the amount will be only a small portion of the total allocation and cannot be spent at FMC’s sole discretion.
DPHHS may continue receiving federal funding over the next four years provided it can demonstrate that funds are being allocated and spent according to approved plans.
The Board adjourned the regular meeting after completing all agenda items. Elaine made a motion to enter Closed Executive Session. Evelyn seconded the motion. The motion carried, and the Board entered Executive Session.
Closed Executive Session
Curt Arnell, President
Heather Schwindt, Recorder and Transcriber
