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<\/u><\/p>\nOct. 31, 2025<\/i><\/p>\n
Watertown-based Prairie Lakes Healthcare System has become part of Sanford Health. The combined organization was finalized this week and brings Prairie Lakes, an 800-employee organization, into Sanford, which now totals more than 53,000 employees.<\/p>\n
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Prairie Lakes was founded in 1986 after two hospitals in Watertown came together: St. Ann and Memorial. The system cares for 90,000 people in a 10-county region of northeast South Dakota and western Minnesota.<\/p>\n
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Prairie Lakes Healthcare System has 60 providers and is licensed to operate 81 acute care hospital beds, including labor and delivery, telemetry, critical care and general hospital. Hospital services also include a 24-hour emergency department, surgery capabilities, interventional cardiology and services providing diagnostics and imaging.<\/p>\n
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The merger with Sanford is the evolution of a decades-long relationship.<\/p>\n
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For more than 20 years, Sanford has operated a clinic on the Prairie Lakes campus with 11 physicians, seven advanced practice providers and 125 employees.<\/p>\n
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\u201cSanford Health and Prairie Lakes have always worked collaboratively in support of our communities,\u201d said John Allen, president and CEO, who will continue to lead the Watertown area.<\/p>\n
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\u201cIn the last year, we have begun working together on areas such as infectious disease, interventional radiology, and we had been planning to migrate to Sanford\u2019s electronic health record, Epic. \u201d<\/p>\n
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As an independent rural health system, \u201cwe have all the challenges of the 21st century, including challenges regarding recruiting, labor market challenges with our supply chain and challenges with our payer relationships,\u201d he continued. \u201cThe relationship with Sanford will really allow us to bolster those things while allowing improved opportunities in health care.\u201d<\/p>\n
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The key consideration in the deal was \u201cthe lens of opportunity for our teams, our providers, our employees and for patients,\u201d he added. \u201cThis represents an incredible improvement and incredible growth in our ability to create connected care, integrated care and improved access to specialties, and for our employees the ability to tap into the deep specialties and research that Sanford Health has to offer.\u201d<\/p>\n
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For Sanford, Watertown and the Prairie Lakes footprint \u201cwill be a significant location and hub within our Sioux Falls market \u2014 their size and scope, really great care they\u2019ve provided to the region over the last few decades,\u201d said Andy Munce, president and CEO of Sanford Health, Sioux Falls region.<\/p>\n
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\u201cOur vision is to continue to support those and also expand with subspecialty services, partnerships with our virtual care initiatives, so we really view this as a hub and support for the entire northeast section of South Dakota and into western Minnesota.\u201d<\/p>\n
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The community is strategically located between Sanford\u2019s larger offerings in Sioux Falls and Fargo.<\/p>\n
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\u201cIt\u2019s a really key location along I-29 that we can bridge together and provide another level of care to the communities in that region,\u201d Munce said.<\/p>\n
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One member of the Prairie Lakes fiduciary board will transition to the Sanford Health Network board of directors, while the current Prairie Lakes board will become a community advisory board consistent with other communities in Sanford\u2019s network.<\/p>\n
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\u201cBoth organizations are mission-driven, not-for-profit health systems, and we share a common bond in being dedicated to caring for the communities we serve,\u201d Allen said. \u201cThis combining of the organizations is really born of our opportunity to serve the area and consumers within it more completely and an opportunity for our providers and employees.\u201d<\/p>\n
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Over time, Prairie Lakes Healthcare System will transition to the Sanford Health name. Patients will continue to see their current provider.<\/p>\n
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The partnership includes financial investments in the Watertown community, \u201cmaking lasting impacts on health, wellness and quality of life in the region for many years to come,\u201d according to both organizations, but it has not been determined yet what forms that will take.<\/p>\n
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The deal is the second announced by Sanford this month. An acquisition of Black Hills Plastic Surgery is expected to be finalized by the end of the year.<\/p>\n
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