FMC Board of Trustees Meeting – June/July 2024
FALLON MEDICAL COMPLEX, Inc.
BOARD OF TRUSTEES MEETING
Wednesday, June 19, 2024
MEMBERS PRESENT ABSENT
Curt Arnell, President
David Kirschten, Vice President
Evelyn Neary, Secretary
Elaine Stanhope, Board Member
Erin Lutts, Board Member
Michele Gray, Board Member
Del Espinosa, Board Member
OTHERS PRESENT
David Espeland, CEO
Marjorie Losing, CFO
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 One correction to a typing error in the May 1, 2024 board minutes was noted. Del moved to adopt approval of the minutes upon the change of the typing error. Erin seconded the motion. All aye, 0 nay. Minutes approved upon correction. IV. FINANCIALS April Financials: We had19 inpatient days and 12 skilled days. Gross Patient Revenue $886,307, $58,000 ahead of the budget. Net Operating Revenue $811,000, $33,000 on the negative side of the budget. Expenses $1,050,000, $37,000 over budget. Operating Loss $238,000, $69,000 on the negative side of the budget. Net Loss $234.000, $102,000 on the negative side of the budget. May Financials: We had 21 inpatient days and 8 skilled days. Gross Patient Revenue $789,000, $67,000 under budget. Net Operating Revenue $1.1 million, $278,000 on the positive side of the budget. Expenses $1,034,000, $12,000 under budget. Operating Income was $115,000, $290,000 on the positive side of the budget. Non-operating Income $100,000, gave a positive net income of $216,000, which is $350,000 on the positive side of the budget. YTD Gross Patient Revenue $8.8 million, $437,000 under budget. YTD Net Operating Revenue $9.7 million, $289,000 on the positive side of the budget. YTD Total Expenses $11.2 million, $24,000 on the positive side of the budget. YTD Operating Loss ($1.5 Million), $314,000 on the positive side of the budget. Non-Operating Income of $846,000, giving us a YTD Net Loss ($730,000). YTD STATS, 174 Inpatient days, 179 in the budget. YTD 4,151 swing days, which is below budget. 184 Skilled days with 220 in budget. Ancillary services: ER and observation are below budget. Procedure room is ahead of budget. Lab is catching up to the budget, but blood bank is ahead budget. EKG, radiology, and mammography are below budget. CT, ultrasound, and MRI ahead of the budget. Rehab visits are below budget, OT is catching up to the budget. Clinic visits are at 3,800, budgeted for 5,600, this time last year we had 4,500. Outpatient counts are a little below budget YTD Change in Cash Equivalents ($117,000). Investment account increased by $47,000. LTC count is up to 16 residents. A/R Discount and collection policy update: Katie called every person who was offered the discount but still need to pay off their balances. We received a little over half of the outstanding balances with this discount offer so far. We are waiting for a response about how to work around our financial assistance dates with Thrive. We are still hoping to have our new FAP in place by October 1, 2024. V. OLD BUSINESS Auxiliary By-laws Update: Final drafts of the Auxiliary Bylaws and Organization Resolution were passed around for approval. Dave made a motion to Approve the By-laws, Del Seconded. All Aye, 0 nay. Evelyn made a motion to approve the Organization Resolution, Erin seconded the motion. All aye, 0 nay. Curt signed both. VII. VI. NEW BUSINESS FY 2025 Budget Review: Margie went over the FY2025 Budget with the Board of Trustees in detail. She reported that the ORCA Committee discussed and proposed an increase of at least 3% in all revenue generating departments and supplies projected to increase by 2-3%. In the Profit and Loss review, we are expecting to see contractual adjustments increase with the revenue increase. The Wage and Salary Budget and Expense Budgets were reviewed in detail with the board, comparing with FY2024 budget numbers with projected numbers for FY2025. The increase overall in wage and salary is projected to be about 2.2%, similar to last fiscal year. Several expenses are expected to go up this fiscal year, such as property insurance, contract labor in the nursing services department, and necessary computer upgrades. It is the hope that with income projections, these will offset each other and not show a significant operating loss. We are speaking with the County about asking for a small increase to assist with some building-related expense increases. Marjorie will update the Board at the next meeting. The Cash Flow prediction is that we are expecting to decrease our patient accounts receivable and get billing and collections stabilized, leaving a total asset amount of $20.2M by end of FY2025. Overall expenses are predicted to be $12.8M, $2.2M predicted operating loss, $450,000 operations reimbursement from county, leaving a net loss $1.2M. Del made a motion to approve the FY2025 budget, Elaine seconded the motion. All aye, 0 nay. FY2025 budget approved as presented. Wibaux County Lease: We received a letter stating that Wibaux was terminating our lease. David contacted the commissioners to discuss the letter and it was noted that our lease is over 3 years old and they are willing to sign a lease with new terms when we can commit to sending a provider up there on a regular basis again. Statement of Leadership Commitment: Statement of Leadership Commitment for Antibiotic Stewardship is the FMC commitment to the CDC to include leadership commitment, accountability, drug expertise, action, tracking and reporting. The board reviewed the statement and asked questions. Erin made a motion to approve the statement, Evelyn seconded the motion. All aye, 0 nay. Motion to sign and enact passed. The Board adjourned their regular session having completed the agenda. VIII. CLOSED EXECUTIVE SESSION. Mid-level Staffing: Updates were provided on the status of our ongoing mid-level staffing. Independent Contractor Offer: Contract provider requested a 3-year agreement, board voted to approve. Provider contract due in July: Provider contract that expires in July would like a 3-year renewal agreement with an option to continue for an additional 2 years was voted to approve. s\ Curt Arnell, President s\Heather Schwindt, Recorder and Transcriber |
