FMC Board of Trustees Meeting – June 4th 2025

FALLON MEDICAL COMPLEX, Inc.

BOARD OF TRUSTEES MEETING

Wednesday, June 4, 2025

MEMBERS PRESENT                                     ABSENT                          

Curt Arnell, President                                      Del Espinosa, Member                         

Erin Lutts, Vice President

Evelyn Neary, Secretary

Elaine Stanhope, Member                              

Michele Gray, Member                                   

Dru Burk, Member

OTHERS PRESENT                                       

David Espeland, CEO                            Heather Schwindt, Recorder

Marjorie Losing, CFO                           

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 May 7, 2025 board minutes as distributed. Michele moved to adopt the approval of the minutes. Erin seconded the motion. All aye, 0 nay. Minutes stand approved as written.

IV. FINANCIALS
I.
A. WixCorp Update: WixCorp is on-site this week implementing and training staff. The payment portal to the public will be rolling out July 1, 2025. We will maintain statements through Trubridge due to an area that is not pulling data the way WixCorp needs it, but are hopeful that we can start with WixCorp statements by July 1, 2026.

B. Paylocity Update: We have started the Paylocity kickoff and are expecting to be live July 1, with first payroll on July 18, 2025.

C. Billing and Collection Policy Update: Eide Bailley has reveiwed the policy and has recommended a couple of wording changes to meet the appropriate regulations. We will be ready to roll it out July 1, 2025 as planned

D. iVitiFi Update: The contract with iVitiFi has been signed and will roll out on July 1, 2025 as planned.

E. April Financials: 11 Inpatient days, 41 Skilled days. Gross Patient Revenue $1,044,000, $196,000 over budget. Contractual adjustments look different due to the Medicaid settlement of $296,000, and positive contractuals from Medicare totaling $309,000. Net Operating Revenue $1.7 M, $830,000 over budget. Expenses $997,000, $58,000 under budget, Operating Income $707,000, $880,000 on positive side of the budget. Adding in our Non Operating Income, we have a Net Income of $761,000 $866,000 on the positive side of the budget. YTD Gross Patient Revenue $9.3 M, $736,000 on the positive side of the budget. Net Operating Revenue $11.4 M, $2.5 M on the positive side of the budget. Expenses $10.6 M, $28,000 on the positive side of the budget. Operating Income $737,000, $2.5 M on the positive side of the budget. Adding in our Non-Operating Income, Net Income $1.2, $2.3 M on the positive side of the budget. Stats Inpatient days 185, ahead of the budget. Swing days 5,640 days, which are a head of the budget. We are at budget with skilled days at 183. ER, Procedure Room and Observation are below budget. Lab is ahead of budget. Blood Bank is 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 are below budget by about 100 visits. Outpatient slightly below budget at 3,571. Change in cash equivalents is $844,072.

VI. OLD BUSINESS

A. Community Health Needs Assessment Update: David updated the Board on the progress of the CHNA and notified the board that they will be presented with the findings to review and approval at the July Meeting. Upon approval, we will publish the report online and work on the associated implementation plan, which is due September 2025.

B. Gas Line Replacement Update: Glycol Pumps are in Billings and will be put in by Star Service later this month. They also quoted the Gas Line Replacement project which came in under $80,000, so the Commission gave the go ahead to do this work, too.

C. Employment Contract Updates: Two of the employment contracts that were approved last month have been signed; the remaining two have wording changes being looked into. They will be brought to the next meeting. We have approved Dr. Baker’s assignments for the next six months and he will start seeing patients on June 22, 2025.

. V VII. NEW BUSINESS

A. Provider Credentialing: Credentialing requests were presented per the attachment. Elaine made a motion to approve the credentialing requests. Evelyn seconded the motion. All aye, 0 nay. Motion passed.
B. FY 2026 Budget Review: Margie went over the FY 2026 Budget with the Board of Trustees in detail. She reported some equipment is being funded through the Foundation. Some long-term debt will be eliminated and new equipment loans will take their place. There is a possibility that we may have to contract a PT provider but that cost is being offset by a contract that is being cancelled mid-year. Wibaux Clinic is looking like it will be reinstated. There is a 6% rate increase which will bring us closer to Medicare rates. Wage and salaries are expected to be up an average of 3% this year. The mill levy money for renovations is being used for door replacement, a clinic lift, and flooring projects. All in all, during FY2026 we are projecting an operating loss of $1.6 M, however, it is almost $1.0M less than what was projected the last two fiscal years. The cash flow prediction is that we are expecting to decrease our patient accounts receivable with the billing and collections implementation. Our investing activity, our depreciation, and our ability to not use our assets to make up operational costs has allowed us to maintain healthy financials and bounce back in less than optimum years. Evelyn made a motion to accept the budget as proposed, Erin seconded the motion. All aye, 0 nay. FY2026 budget approved as presented.

Evelyn made a motion to go into executive session, Erin seconded the motion.

VIII. CLOSED EXECUTIVE SESSION

The Board adjourned their regular session having completed the agenda.

s\ Curt Arnell, President

s\ Heather Schwindt, Recorder and Transcriber