Sanford’s $500M Rapid City Hospital Plan Sparks Funding Fears For Monument Health

Monument Health, the region’s only hospital provider, is bracing for major changes after Sanford Health announced plans for a $500 million medical campus in Rapid City. The new facility, backed by a $300 million donation from philanthropist Denny Sanford, will include a 168‑bed hospital and specialty clinics by 2030. Monument CEO Paulette Davidson warns the expansion could cost her system $40 million a year in federal funding, threaten specialty programs like stroke care, and force cutbacks in construction projects, including upgrades to the neonatal intensive care unit. She says the community relies on Monument for charity care and behavioral health services, which may be at risk. Sanford Health CEO Bill Gassen counters that competition will improve care, pointing to Sioux Falls as an example. He insists Sanford is committed to serving all patients, regardless of income. For now, both health systems say they hope to find ways to partner, even as they prepare to compete for patients and resources in western South Dakota.