Section 2: About Sanford Health Plan (SHP)

2.1 Sanford Health Plan

Sanford Health Plan, headquartered in Sioux Falls, South Dakota, is a non-profit, quality- driven, managed care organization that provides products and services to individuals, businesses and government entities. As part of an integrated health system, Sanford Health, we are uniquely positioned to understand the needs of patients, the challenges of health care providers, and the demand of quality, affordable health care coverage for our employers, individuals and families.

Since Sanford Health Plan’s inception in 1998, we have focused on building long-term partnerships. We also partner with local insurance agents in our service area to offer products and services to meet their unique health insurance needs. In addition, we are here to help our partners navigate the complexities of the dynamic health care industry and regulatory environment.

2.2 Sanford Health Plan Corporate Organization

Sanford Health Plan is a wholly owned, non-profit subsidiary of Sanford Health. The Sanford Health Board of Trustees is ultimately responsible for the governance of Sanford Health Plan, but has delegated to the plan’s Board of Directors authority to act as the governing body of the plan. The President of Sanford Health Plan is accountable to the Sanford Health Plan Board of Directors.

The Board of Directors acts as the conscience of the Plan, looking not only at what the Plan does, but also at what it means to its members and to what extent it has succeeded in meeting the expectations associated with its customers. The Board of Directors is charged with guardianship of the goals and the long-term vision of the organization.

To assure the success of Sanford Health Plan, physicians and health care providers on the Board of Directors have a central role in the functioning of the Board as they participate in strategic planning and policy development.

2.3 History of Sanford Health Plan

In 1996, Sioux Valley Hospitals & Health System formulated a corporate response to the changing health care marketplace, the rapid growth in the number of managed care service organizations, and the need to meet the coverage requirements of Medicare-eligible residents within the organization’s tri-state service area.

A panel of health care professionals was assembled and charged with the responsibility of researching, designing, and developing the requisite infrastructure for an outcomes-based health maintenance organization that would be recognized in the local marketplace and associated with quality health care. The result was the formulation of Sioux Valley Health Plan. In March 2007, Sioux Valley Health Plan changed its name to Sanford Health Plan as a result of a generous gift of $400 million to Sioux Valley Hospitals & Health System from South Dakota businessman, T. Denny Sanford.