Sanford Health, the nation’s leading rural health care system headquartered in Sioux Falls, South Dakota, and Prairie Lakes Healthcare System, a trusted independent provider serving Watertown and a 10-county region in northeast South Dakota and western Minnesota, recently announced the two systems have combined their organizations, strengthening care delivery in the region.

The partnership includes financial investments in the Watertown community, making lasting impacts on health, wellness and quality of life in the region for many years to come.

“As mission-driven nonprofit health care systems, Sanford Health and Prairie Lakes Healthcare System are dedicated to caring for the communities we serve,” said Andy Munce, president and CEO of Sanford Health, Sioux Falls region. “Our partnership will ensure patients and community members continue to have access to world-class services and providers for generations.”

Sanford Health has a long history of providing world-class health care for the Watertown community and has a strong relationship with Prairie Lakes Healthcare System, which is what led to the mutual decision to partner. Learn more about the combination here.

This partnership expands the health plan’s ability to offer affordable coverage options designed to meet the unique needs of individuals, families and employersin the Watertown community and the surrounding region. More information will be available in the coming weeks, but in the meantime please reference the Broker and Client Frequently Asked Questions (FAQ) below – or reach out directly to your account executive with questions.

Sanford Health and Prairie Lakes Healthcare System Combination: Frequently Asked Questions (FAQs)

Q: Are there any immediate changes to product or network offerings in Watertown and the surrounding 10-county region in northeast South Dakota and western Minnesota?
A: Yes. Sanford Health Plan has expanded our large employer Sanford TRUE plans into this region for 2026 because Prairie Lakes Healthcare System is now part of our focused network. Additionally, our large employer Sanford PLUS plans will see Prairie Lakes Healthcare System move from a Tier 2 provider within our tiered network to Tier 1 effective Jan. 1, 2026. These enhancements allow us to immediately offer additional savings opportunities to employers and employees across the region.
 
Q: Where do I find information on the large group Sanford TRUE zip-code expansion?
A: You can access the expanded zip codes for 2026 [here]. Member eligibility for large employer plans is based on the employee’s residential zip code. The Sanford TRUE provider directory has already been updated to reflect Prairie Lakes Healthcare System as an in-network provider and facility within the focused network.
 
Q: Did any zip-code expansion take place for the large group Sanford PLUS plans?
A: This analysis is currently under review; however, Sanford PLUS plans already offer broad eligibility throughout this region. The key change for 2026 is that Prairie Lakes Healthcare System will move from a Tier 2 to a Tier 1 in-network provider, offering lower cost shares for members enrolled in these plans. You can access the current zip codes [here]. Member eligibility for large employer plans is determined by the employee’s residential zip code. The Sanford PLUS provider directory will be updated by January 1 to reflect Prairie Lakes Healthcare System as a Tier 1 provider and facility within the tiered network.

Q: When can a current large employer add one of these additional network offerings to their existing plan?
A: Large employers can add this to their plan offerings to employees either at renewal or have the flexibility to add Sanford TRUE or Sanford PLUS plans mid-year as a network-only change without impacting renewal cycles. This ensures consistency in rates, benefits, and enrollment rules.

• Groups may adopt Sanford TRUE or PLUS mid-year if newly eligible through zip code or network expansion.
  
• Current renewal date and rating structure remain unchanged.
  
• Mid-year adoption is treated as a network-only change due to access expansion, not a benefit change.
  
• Deductibles, OOPM and other benefit structures remain locked for the plan year.
• No new open enrollment event is triggered. Employees cannot change deductibles, or plan designs mid-year.

 
Q: Will there be any changes to ACA small group and individual plans in and around the Watertown region?
A: Yes. We plan to expand additional ACA plan and network offerings into this region in the near future. More information will be shared as details are finalized.