FMC Board of Trustees Meeting – September 3rd 2025

FALLON MEDICAL COMPLEX, Inc.
BOARD OF TRUSTEES MEETING
Wednesday September 3, 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 Tammy Reetz, Materials Management
Marjorie Losing, CFO
Heather Schwindt, Recorder

I. CALL TO ORDER
Curt called the meeting of the FMC Board of Trustees to order at 5:36 p.m. in the FMC Community Room.

II. PUBLIC INPUT – There was no public input.

III. APPROVAL OF MINUTES
One correction: a 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.

IV. MANAGER REPORTS

A. Tammy Reetz, Materials Management: Tammy updated the Board that the Medline contract is working well so far. She mentioned that Baxter is looking into having a warehouse of IV fluid where facilites can order a pallet and it is guaranteed for them for a year with free shipping, and they will also rotate the stock at no additional cost. It is a cost effective solution, however, she would like more information as there are issues getting the tubing for the fluid, not just the fluid. She has a meeting with them next week and is hoping for more information. She updated the Board on smaller facilities looking to band together in a GPO to get better pricing for small and rural areas.

V. FINANCIALS
I.
A. FY 2025 Auditors: Marjorie noted that the auditors from Eide Bailley will be on site September 15-19 and invited the board to stop by at their convenience to talk with them. She will schedule time with the Board President.
B. FY 2025 Interim Financial; Adjusting Entries: Marjorie noted that we went through the FY 2025 Interim Financials at the August Meeting. She then presented the Adjusting Entries to the Board. She is estimating that there is a $410,000 payable to Medicare which negatively affected net revenue; a $10,000 adjusting entry on our increase in inventory; a $46,899 for over-billing of the property insurance premium last year; a $17,500 worker’s comp rebate; a $6,840 mill levy reconciliation with the County; and $12,682 in Foundation gifts.

C. FY 2025 Interim Financial Packet: Marjorie went throught the FY 2025 interim financial packet in detail with the board, reviewing all income and expenses, showing where the adjusting entries went and reviewed schedules A-T in detail, in addition to the Foundation financial statements.

VI. OLD BUSINESS

A. Project Updates: The gas line project is completed. The hospital boilers are not yet operational as there was a control panel issue that is being fixed before tests are run. There was a walk through on August 26th for the upcoming renovation project, and 3 general contractors attended. We are hopeful to the winning bidder on-site was early as October or November, with work to be completed no later than the end of March.

B. Community Health Needs Assessment: The assessment was posted July 1, 2025. There was a meeting held yesterday to start putting the implementation plan together. It will need to be published by September 30th per regulations.

. V VII. NEW BUSINESS

A. Dietary Department: Staffing in the Dietary Department is being rebuilt due to turnover. Solutions may include a contract cook with experience in healthcare facilities so we can get the department running how it should. Several staff have stepped up to volunteer to cook to get us through the transition.

B. Casper Medical Imaging: Dr. Jaszczak is no longer able to do DI reads. We have reached out to Casper Medical Imaging to do our reads going forward. Casper will be directly billing patients for image reads, so we will roll out notifying patients of this change.

C. Billings Clinic Lab Director: The current Billings Clinic Lab Director is retiring and the new one will be here later this month to introduce themselves.

D. October Breast Cancer Awareness Events: The OBCAL Luncheon is set for October 2. The new 3-D Mammo machine is up and running, and normally the push is to schedule shortly after the luncheon, however, with the switch to Casper Medical and getting the right certifications, we may be delayed until later in October. Johnna mentioned that if the Board would like to assist in serving during the luncheon she would welcome their help.

E. Board Member Expirations/ Nominating Committee: Erin’s, Evelyn’s and Dru’s positions are up for expiration this year and were asked to think about if they would like to re-run for the Board. They were asked to notify the Board at the next meeting. The Board was also asked to bring nominee names to the October meeting so the nominating committee can consider additional names to be added to the vote. The Record Date is also set at this meeting. The Board was also reminded that November is the meeting where the nominations are finalized, the annual meeting agenda is determined, including the date for the meeting, and notices for the meeting are discussed.

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

VIII. CLOSED EXECUTIVE SESSION

The Board Chair re-opened the meeting

A. Provider Contract Renewal: Erin made a motion to approve a provider’s counteroffer of a contract. Elaine 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