Which South Dakota hospitals Medicare is penalizing for infections and patient-safety problems in fiscal year 2026, and which had more readmissions than expected.
Penalized hospitals first. Click a column to sort.
| Hospital | HAC penalty | Readmissions above expected | VBP score |
|---|---|---|---|
| Brookings HospitalBrookings | 1% cut | 1 of 3Highest: Heart failure 1.01 | 50.8 |
| Prairie Lakes Hosp & Care CtrWatertown | 1% cut | 1 of 5Highest: Heart failure 1.01 | 21 |
| St Mary's Healthcare CenterPierre | 1% cut | 1 of 4Highest: Heart failure 1.01 | 35.1 |
| Avera Sacred Heart HospitalYankton | No | 3 of 3Highest: Heart failure 1.03 | 29.6 |
| Avera St LukesAberdeen | No | 2 of 5Highest: Hip or knee replacement 1.05 | 32 |
| Rapid City Regional HospitalRapid City | No | 2 of 6Highest: Heart bypass surgery 1.16 | 26.7 |
| Sanford Usd Medical CenterSioux Falls | No | 2 of 6Highest: Hip or knee replacement 1.07 | 27.4 |
| Avera McKennan Hospital & University Health CenterSioux Falls | No | 1 of 4Highest: Hip or knee replacement 1.10 | 22.3 |
| Dunes Surgical HospitalNorth Sioux City | No | 1 of 1Highest: Hip or knee replacement 1.13 | – |
| Pine Ridge Ihs HospitalPine Ridge | No | 1 of 2Highest: Pneumonia 1.02 | – |
| Sioux Falls Surgical Hospital LLPSioux Falls | No | 1 of 1Highest: Hip or knee replacement 1.25 | – |
| Spearfish Regional HospitalSpearfish | No | 1 of 2Highest: Heart failure 1.02 | 34.3 |
| Avera Heart Hospital of South Dakota LLCSioux Falls | No | 0 of 3 | 39 |
| Black Hills Surgical Hospital LLPRapid City | No | 0 of 1 | – |
| Phs Indian HospitalRosebud | No | – | – |
| Same Day Surgery Center LLCRapid City | No | – | – |
| Sanford Medical Center AberdeenAberdeen | No | 0 of 3 | 40.7 |
3 of 17 South Dakota hospitals in the program (18%, vs 24% nationally) have their Medicare payments cut 1% in fiscal year 2026: Brookings Hospital, Prairie Lakes Hosp & Care Ctr, St Mary's Healthcare Center.
It means the hospital's Medicare patients were readmitted within 30 days more often than CMS expected for similar patients. In South Dakota, 12 of 15 rated hospitals were above 1.00 on at least one condition.
HAC: the quarter of hospitals with the worst hospital-acquired condition scores get a 1% cut to Medicare inpatient payments. Readmissions: a ratio above 1.00 means more readmissions than expected; whether payments are cut depends on how the hospital compares with similar hospitals, so a ratio above 1.00 alone isn't a penalty. VBP: Value-Based Purchasing total performance score out of 100. How the penalties work.