FMC Board of Trustees Meeting – October 1st 2025
FALLON MEDICAL COMPLEX, Inc.
BOARD OF TRUSTEES MEETING
Wednesday October 1, 2025
MEMBERS PRESENT ABSENT
Curt Arnell, President
Erin Lutts, Vice President
Evelyn Neary, Secretary
Elaine Stanhope, Member
Michele Gray, Member
Del Espinosa, Member
Dru Burk, Member
OTHERS PRESENT
David Espeland, CEO Linden Preuit, Housekeeping Manager
Marjorie Losing, CFO Karol Zachmann, Foundation
Heather Schwindt, Recorder
FALLON MEDICAL COMPLEX, Inc.
BOARD OF TRUSTEES MEETING
Wednesday October 1, 2025
MEMBERS PRESENT ABSENT
Curt Arnell, President
Erin Lutts, Vice President
Evelyn Neary, Secretary
Elaine Stanhope, Member
Michele Gray, Member
Del Espinosa, Member
Dru Burk, Member
OTHERS PRESENT
David Espeland, CEO Linden Preuit, Housekeeping Manager
Marjorie Losing, CFO Karol Zachmann, Foundation
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
A second scrivener’s error to the August 6, 2025 meeting minutes was noted. Elaine moved to adopt the approval of the minutes with a correction to the error. Erin seconded the motion. All aye, 0 nay. Minutes stand approved upon correction. An error to the reporting of executive session in the September 3, 2025 minutes was noted. Erin moved to adopt the approval of the September minutes with a correction to the error. Michelle seconded the motion. Minutes stand approved upon correction.
IV. MANAGER REPORTS
A. Linden Preuit, Houskeeping Manager: Linden updated the Board that finding adequate staffing is challenging, but with herself, her one staff member and some help from another supervisor and others in the facility, we are keeping in compliance. She and her staff have been working together to be flexible and creative to maintain our standards. We have looked into staggard scheduling, or part-time positions and are still coming up without applicants.
B. Karol Zachmann, Foundation: Karol gave the board a detailed report on all of the fundraising events over the last year and noted that most all funds are going toward the Omnicell with some going toward public and employee scholarships. Karol noted all of the duties of the PR committee and talked to the board about the newly formed Marketing Committee and that we are contracting with H2M Brandhaus to move forward with upgrading our marketing strategy. We have 37 Lifeline subscribers with the majority in Fallon County, but have some subscribers in Ekalaka, Wibaux and Marmarth.
V. FINANCIALS
A. Updates: Auditors were here and all went well and Katie was more involved with the A/R Project and questions that they had.
B. July and August Financials: July had 10 inpatient days and 19 skilled days. Gross Patient Revenue $1,000,079, $103,000 over budget. Net Operating Revenue $1.2M, $250,000 over budget. Expenses $1,062,000, $93,000 under budget. Operating Income of $191,000, $343,000 on the positive side of the budget. Adding Non-Operating income of $119,000, Net Income of $310,000, $400,000 on the positive side of the budget. August 10 Inpatient Days, 34 skilled days. Gross Patient Revenue $1.1M, $127,000 over budget. Net Operating Revenue $1.1M, $124,000 over budget. Expenses $1.1M, $17,000 under budget. Operating Loss $10,900, $140,000 on the positive side of the budget. Non-operating income $139,000, Net Income of $128,000, $217,000 on the positive side of the budget. YTD at end of August, $2.1M Gross Patient Revenue, $230,000 on the positive side of the budget. Net Operating revenue $2.3M, $375,000 on the positive side of the budget. Expenses $2.2M, $87,000 on the positive side of the budget; variances were due to a drug order and contract labor. Operating Income $180,000, $462,000 on the positive side of the budget. Non-operating Income $258,000, Net Income $438,000, $593,000 on the positive side of the budget. YTD Stats: 20 inpatient days, 19 days below budget. Swing Days are below budget on intermediate days but skilled are ahead of the budget. ER, Procedure and Observation are ahead of budget. Lab is below budget, blood bank is ahead of budget. EKG, Ultrasound, CT, MRI are ahead of budget. MRI and Mammography are below budget. PT and OT are ahead of budget. RHC Budget is 3 visits ahead of budget. Outpatient encounters are at 130 over budget. Change in cash equivalents is $90,118 on the positive side
VI. OLD BUSINESS
A. Project Updates: The renovation project was bid on time and was awarded to Sletten Construction by the Commission. The Commissiones stipulated that Sletten use a Montana contractor to replace the aluminum entryway in LTC. Sletten will be doing a walkthrough on October 2 to finalize project plans, and departments that will be affected by the renovations were invited to participate in the walk-through. The Commission also agreed to cover the costs of the glycol pump project, the gas line project, and the compressor above the IT room, which will provide us with more resources from the remaining Mill Levy fund. The excess funds may assist with some change orders, other minor projects in the facility, and the purchase of a new chiller for Long Term Care. The Commission also approved their budget for FY 2026 and reminded us that if we have any proposals to get them submitted by March 2026 for FY 2027.
B. Community Health Needs Assessment: Our CHNA Report was posted June 30. Managers met and put together an Implementation Plan for the next 3 years based on the report, which was presented to the Board. Upon approval of a resolution, the report will be posted on our website. Elaine made a motion to pass a resolution accepting the implementation plan. Del seconded the moton. All aye, 0 nay. Motion passed.
C. Dietary Update: We advertised internally for Dietary Manager and Karla Kings was selected as the new Dietary Manager. She will be provided ongoing assistance for a few months from HR for staffing and direction for managing staff; Judy and Libby for QA, Compliance and Infection Control; Jeanna for food ordering and menus; and Marjorie for department fiscal management. With successful transition in a few months, the Dietician, Mary Tvedt, has suggested the Manager should take a Certified Dietary Manager Course to finalize the training for the department. A professional cleaning company has been contracted to do a deep cleaning of the department to ensure we are completely up to code on the hood and vents and also do a deeper cleaning of walls and buildup. It was noted that Sara Brown has applied for and been accepted as the new Activities Director. The board was informed that Judy, Libby and Heather are also looking into the possiblilty of combining Housekeeping and Laundry into one department to assist in the needs for both of those departments, but that is still being explored and will be reported on as it moves forward. There have been talks with MHN about looking into assisting facilities with housekeeping, dietary and maintenance needs, but there is not a plan in process for those needs at this time. During a conference the topic of the President’s Transformational Grant for rural healthcare facilites was brought up. The grants have very specific criteria, which are largely focused on facilities taking on new challenges, such as robotic surgeries and other AI/technology-based services. There has been some degree of concern voiced about using the monies to increase primary care needs, and stablizing small rural facilities, including the possibility of putting together education loan repayment programs for providers so it isn’t falling on the shoulders of the facilites
. V VII. NEW BUSINESS
A. Lab Instrument Purchases: We have committed to the purchase of four new lab instruments. One of them has arrived and been installed. The total cost for all four instruments is $181,950. We received a loan for them from the Montana Facility Finance Authority at a guaranteed 3.97% interest rate. We have not finalized the loan as we are waiting to see if interest rate decreases any further before a resolution is brought to the board for the loan. The new instruments have better accuracy and the supplies to maintain them are more affordable.
B. Establishment of Record Date: Per the by-laws, a record date must be established 60-days prior to the annual meeting. As of that date, no new applications for corporate membership can be processed. It was noted that we had several members drop off at the end of 2024. The annual meeting has to be in December with notice of the date of the meeting not less than 10 days prior to, or 30 days more than, the annual meeting. The board looked at the calendar and Elaine Made a motion to set the annual meeting for December 3, 2025. Del seconded the motion. All aye, 0 nay. The record date is set for October 3, 2025.
C. Review Nominations for Board Members: Erin, Dru and Evelyn are up for renewal this year. Evelyn noted that she is considering not running. It was noted that she could attend virtually if she is maintaining her Fallon County residence. Evelyn will decide by the November meeting if she is going to re-run. No other names for nominees were presented at this time but there will be names brought forward at the November meeting.
D. Credentialing: Erin made a motion to add medical credentialing to the agenda. Del seconded the motion. The Board was presented with several new candidates for credentialling through Casper Medical Imaging and the new temporary Lab Director from Billings Clinic. Dru made a motion to approve the credentialling of those candidates. Michele seconded the motion. All aye, 0 nay. The Board was presented with renewal of credentials for Telemed staff. Evelyn made a motion to approve the renewal credentialling. Erin seconded the motion. All aye, 0 nay.
Curt closed the meeting to go into Closed Executive Session.
VIII. CLOSED EXECUTIVE SESSION
Evelyn made a motion to re-open regular session. Dru seconded the motion.
A. Provider Contract Renewal: Evelyn made a motion to approve a second counteroffer of a contract. Erin Seconded the motion. All aye, 0 Nay
The Board adjourned their regular session having completed the agenda.
Curt Arnell, President
Heather Schwindt, Recorder and Transcriber
