How are South Dakota hospitals doing financially?

31 of 54 South Dakota hospitals (57%) reported a loss on patient care in their latest full-year Medicare cost report, compared with 55% nationwide. The median operating margin was -0.8%, higher than the U.S. median of -1.6%. The operating margin leaves out donations, investment income and grants, so some of these hospitals still end the year in the black.

South Dakota hospitals reported $60.0 million in charity care (the cost of free or discounted care for patients who qualify) in their latest full-year reports. The largest amounts came from Sanford Usd Medical Center ($21.6 million), Avera McKennan Hospital & University Health Center ($16.9 million), Rapid City Regional Hospital ($3.1 million), Sanford Medical Center Aberdeen ($2.2 million), Sanford Vermillion Hospital ($1.8 million).

South Dakota ranks 24 of 50 states by the median operating margin of its hospitals (1 = highest). A larger share of its hospitals lost money on patient care than the U.S. as a whole (57% vs 55%).

Avera McKennan Hospital & University Health Center in Sioux Falls reported the most net patient revenue: $1.7 billion in its latest full-year cost report, with 563 beds and an operating margin of -7.6%.

It is how much a hospital keeps from patient care after paying its operating costs, as a share of its patient revenue. A margin of 5% means the hospital kept 5 cents of every dollar it earned from patients; a negative margin means patient care cost more than it brought in. It excludes donations, investment income and grants.