FMC Board of Trustees Meeting – January 7th 2026
Fallon Medical Complex, Inc.
Board of Trustees Meeting
Wednesday, January 7, 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
• Spring Nacey, Rehab Manager
• John Hauck, Eide Bailey Auditor
Call to Order
Curt Arnell called the meeting of the FMC Board of Trustees to order at 5:31 p.m. in the FMC Community Room.
Public Input
There was no public input.
Approval of Minutes
No additions or corrections to the December 3, 2025 Board Minutes as distributed. Del moved to adopt the approval of minutes. Evelyn seconded the motion. All aye, 0 nay. Minutes stand approved as written.
No additions or corrections to the December 3 Annual Corporate Meeting Minutes as distributed. Evelyn moved to adopt the approval of minutes. Erin seconded the motion. All aye, 0 nay. Minutes stand approved as written.
Manager Reports
Spring Nacey, Rehab Services Manager
Spring reported to the Board that FMC has two full-time Physical Therapists, with one of them having a four-day-per-week commitment, and currently two contract Physical Therapists. One contract is here until mid-March and the other expires at the end of January.
Spring noted that there is not currently a waitlist for Physical Therapy. The department typically has the volume for four providers, but the cost of maintaining contract providers until open positions are filled needs to be evaluated.
Financials
Auditor Report – Eide Bailey
John Hauck with Eide Bailey reviewed the FY 2025 Audit Report in detail with the Board of Trustees, including the FMC Foundation. He concluded his presentation with letters addressed to the Board explaining Eide Bailey’s role, the work completed under the FY 2025 engagement agreement, and an explanation of the Auditor’s Report. No major discrepancies were noted.
November Financials
Marjorie discussed the November financials in detail. November had 8 inpatient days and 1 skilled day.
Financials:
• Gross Patient Revenue: $788,000 ($156,000 under budget)
• Net Operating Revenue: $784,000 ($186,000 under budget)
• Expenses: $1,036,000 ($70,000 under budget)
• Operating Loss: $252,000 ($115,000 negative to budget)
• Non-operating Income: $93,700 ($115,000 negative to budget)
• Net Loss: $158,000 ($83,000 negative to budget)
Year-to-Date:
• Gross Patient Revenue: $4.7 million ($93,000 under budget)
• Net Operating Revenue: $5,092,000 ($142,000 positive to budget)
• Expenses: $5.4 million ($166,000 positive to budget)
• Operating Loss: $387,000 ($309,000 positive to budget)
• Non-operating Income: $538,000
• Net Income: $151,000 ($533,000 positive to budget)
A payable on the Medicaid cost report for cost reimbursement of $390,000 was adjusted during the audit to an estimated $450,000 to cover Medicaid cost reports that are still outstanding.
Year-to-date statistics:
• Inpatient days: 32 (Budget: 54)
• Swing days: 2,585 (Budget: 2,750)
• Skilled days: 56 (Budget: 80)
Ancillary Services:
• ER, Procedure, and Observation were ahead of budget.
• Lab and Blood Bank were below budget.
• EKG, Radiology, CT, MRI, and Ultrasound were ahead of budget.
• Mammography was below budget but catching up quickly.
Physical Therapy was ahead of budget with 4,027 visits compared to 2,641 budgeted. Occupational Therapy will remain ahead of budget until year-end when OT numbers are no longer reported. Rural Health Clinic visits totaled 1,667 compared to 1,704 budgeted. Outpatient encounters were ahead of budget with 2,154 encounters compared to 1,995 budgeted.
Year-to-date change in cash equivalents was ($490,000). Marjorie noted that FMC may receive reimbursement if skilled days remain low.
Old Business
Project Updates
Flooring throughout the building remains the primary focus. Installation of the new clinic lift is expected to begin by February 1, and door projects will also begin in February.
The Board was asked whether the lift could be dedicated in memory of Betty Muller, the longest-serving Board President and a strong advocate for obtaining a lift at the clinic entrance. The Board agreed.
Environmental Services
Natasha McGarr has been offered and accepted the role of Manager for the newly combined Environmental Services Department. The department is operating smoothly and is fully staffed.
New Business
Provider Credentialing
The Board was presented with two Radiologists for credentialing who are part of Real Radiology, the company that provides overnight reads. Elaine made a motion to approve credentialing for both candidates. Evelyn seconded the motion. All aye, 0 nay.
Election of Officers
Elaine made a motion to nominate Curt Arnell as President, Erin Lutts as Vice President, and Evelyn Neary as Secretary. Evelyn seconded the motion. All aye, 0 nay.
Corporate Membership Applications
Heather presented the list of Corporate Membership applicants. Erin made a motion to approve all applicants. Elaine seconded the motion. All aye, 0 nay.
Employee Health Insurance
The County was audited and cited for subsidizing a private entity’s health insurance. The County currently pays 40% of FMC’s insurance premium, with FMC and its employees paying the remainder.
The County Insurance Committee reviewed alternatives for the remainder of the current fiscal year and the upcoming fiscal year. Debbie Wyrick identified a Montana statute enacted in 2023 stating that county governing bodies may, at their discretion, consider employees of private nonprofit hospitals, health centers, or nursing homes as county employees for purposes of participation in group medical and health plans. The statute further provides that the county may pay all or part of the cost of coverage.
Debbie and Marjorie reviewed the statute with the County Attorney and the auditor. As a result, the auditor removed the finding.
The Commission has decided to maintain the current arrangement for now and revisit the issue during the next budget cycle. FMC will continue exploring alternative insurance options to prepare for any future changes. If a change becomes necessary, it will be presented to the Board for discussion regarding potential cost-sharing with employees.
The Board adjourned the regular meeting after completing all agenda items and entered Executive Session.
Closed Executive Session
________________________________
Curt Arnell, President Heather Schwindt, Recorder and Transcriber
