FMC Board of Trustees Meeting – July 2nd 2025

FALLON MEDICAL COMPLEX, Inc.

BOARD OF TRUSTEES MEETING

Wednesday July 2, 2025

MEMBERS PRESENT                                     ABSENT                          

Curt Arnell, President                                      Evelyn Neary, Secretary             

Erin Lutts, Vice President

Elaine Stanhope, Member                              

Michele Gray, Member

Del Espinosa, Member                                   

Dru Burk, Member

OTHERS PRESENT                                       

David Espeland, CEO                            Katie DuCharme, Revenue Cycle Manager

Marjorie Losing, CFO                            Spencer Fey, FNP

Heather Schwindt, Recorder   

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

     No additions or corrections to the June 4, 2025 board minutes as distributed.  Erin moved to adopt the approval of the minutes.  Michele seconded the motion.  All aye, 0 nay.  Minutes stand approved as written. 

IV. MANAGER REPORTS

A.           Spencer Fey, FNP: Spencer introduced himself to the board and reported that he is now approved to do DOT physicals.  He has his BLS certification and is working on his ATLS certification.  The Board asked Spencer for his input on things he feel would be improvements to the clinic and Spencer shared his thoughts.  Spencer was asked about his willingness to travel to the Wibaux clinic and he stated he was not opposed to the idea.  Spencer was asked for his input on Dr. Baker and he noted he hasn’t had to ask a lot of questions of him yet so he doesn’t have much input.

V. FINANCIALS    

A.           Billing and Collection Policy:  Katie reported that the Billing and Collection Policy went into place July 1, 2025, and noted we put out a notice of the new policy on social media as well as the paper.  iVitiFi is active and as accounts get closer to their age-out, we will know more about how well they work with patients.  Katie also reported about the new policies and programs we had to restructure in the Business Office and went into detail with the board on how the staff has been restructured, noting that there is no longer a BO supervisor position, She also recapped each position’s duties.

B.           Paylocity Update:  Margie reported to the Board that the live punch date went from July 1, 2025 to July 13, 2025 with first payroll date on August 1, 2025.

C.           May Financials: 15 Inpatient days, 12 Skilled days.  Gross Patient Revenue $869,000, $7,000 below budget.  Net Operating Revenue $972,000, $70,000 ahead of the budget.  Expenses $1,083,000, $7,000 under budget, Operating Loss $111,000, $77,000 on positive side of the budget.  Non Operating Income $92,000. Net Loss $19,000, $90,000  on the positive side of the budget.  YTD Gross Patient Revenue $10.2 M, $728,000 on the positive side of the budget.  Net Operating Revenue $12.3 M, $2.6 M on the positive side of the budget.  Expenses $11.7 M, $35,000 under budget.  Operating Income  $626,000, $2.6 M on the positive side of the budget.  Non-Operating Income $630,000, Net Income $1.2 M, $2.4 M on the positive side of the budget.  Stats Inpatient days 200 with 174 in the budget. Swing days 6,190 days, 4,901 in the budget.  We are below Medicare skilled days at 195 with 202 in the budget.  ER and Procedure Room are below budget.  Observation is at budget. Lab and Blood Bank below the budget.  Mammography is ahead of the budget. CT, EKG, Radiology, Ultrasound, and MRI are below budget.  PT and OT ahead of budget.  RHC visits, 3,661 with 3,809 in the budget.  Outpatient slightly below budget at 4,336 with 4,415 in the budget.  Change in cash equivalents is $723,000.

VI. OLD BUSINESS

A.           Project Updates:  The glycol pumps are in and operating.  Star is now working on installing and welding the gas pipes and should be done by the end of July.  We are still waiting on the architect and engineer to finalize the doors, floors and elevator construction.  Still hoping to have it out to bid before September so the work can get it done this winter.

B.           Employment Contract Updates:  Dr. Sullivan thanked the board for the amendment to his contract.  Amendments to PT contracts: one has not been completed, and another is signed.  A contract PT will be starting to assist the Rehab with patient volume, due to the waiting period for patients to receive services.

Del made a motion to go into executive session.  Dru seconded the motion.

VII. CLOSED EXECUTIVE SESSION I

Del made a motion to exit executive session. Michele seconded the motion.  All aye, 0 nay.  Regular Session Resumed

VI. OLD BUSINESS (continued)

C.           Provider Contract Renewal: The Board voted and approved to offer a renewal contract.

D.           Community Health Needs Assessment:  The board reviewed the Community Health Needs Assessment Report and noted that the pages were numbered incorrectly.  Erin moved to approve the assessment and post it on the website pending the correction to the page numbers.  Elaine seconded the motion.  All aye, 0 nay. 

V VIII.  NEW BUSINESS

A.           Workers Comp Inspection & Review:  The Board reviewed the inspection report submitted by Mike Weigl of MHN.  The work comp program that FMC participates in was explained to the board in detail.

B.           Pharmacy Inspection:  David reported that we had our pharmacy inspection and the State has renewed our license.  The new Omnicell will be installed on October 13, 2025.

Del made a motion to go into a second executive session.  Dru seconded the motion.

IX. CLOSED EXECUTIVE SESSION II

Del made a motion to come out of executive session.  Elaine seconded the motion.

The Board adjourned their regular session having completed the agenda.

________________________________

Curt Arnell, President

Heather Schwindt, Recorder and Transcriber