ReturnofOrganization ExemptFromIncomeTax omsNo '5-0'990s.foundationcenter.org/990_pdf_archive/460/... · & vascular, children' s , cancer, neuroscience, trauma, orthopedics, and women

CHANGE OF ACCOUNTING PERIOD

Return of Organization Exempt From Income Tax omsNo "'5-0"'F;m ^O Under section 801(c), 527, or 4847(ax1) of the Internal Revenue Code (except black lung

2008Cepa.

idm°Tr benefit trust or private foundation)09611110""IM 10,

I ,m rms..sane ► The organization may have to use a copy of this return to satisfy state reporting requirements.

A For the 2008 calendar year, or tax year beginning NAY 1 , 2009 and ending JUN 30, 2009

B Chad* n plasse C Name of organization D Employer Identification numberRplicave:

use IR8Ad*e s label or

^chop ,jffls, eaford Health Group Return

Qcn0T0nr.,ss typeDoing Business As 46 - 0462161

Q:rum sea Number and street (or P.O. box It mail is not delivered to street address ) ROOM/suite E Telephone numberspacma

^^^ h 305 hest 18th Street , PO Box 5039 605 - 333-1000

l^J m°1 t1°"'' City or town, state or country , and ZIP + 4 0 Gio a scripts i 171 , 566 , 764.

O Q Sioux Palls . SD 57117 - 5039 H(a) Is this a group return

F Name and address of principal officer.Relby Xrabbenhoft for affdiahe ? MXyes ON.

I nane as C above H(b) Are all 01118tes Included? Myles [----]No

Tax-exempt status: Ljj 501 c 3 insert no.) 4947(a)( 1 ) or 527 If 'No,' attach a kst. (see instructions)

J Webslte : ► wwe. sanfordhealth . orp H(c) Group exemption number ► 3720

K Type of or0anintlan: IIJ Corporation "Trust I I Association L_I I L Year of formation: I M State at Ieoal domicile:

I Briefly describe the organization's mission or most significant activities: As a healthcare organization,

Sanford Health ' s mission is 'Dedicated to the Work of Healing,"

2 Check this box ► L_J If the organization discontinued Its operations or disposed of more than 25% of Its assets.

3 Number of voting members of the governing body (Part VI, final e.) .... ........ . S 52

4 Number of Independent voting members of the governin b

e

„ ,. 4 13

5 Total number of employees (Part V, line 2a) __•. ... , ... o .. ... b

8 Total number of volunteers (estimate if necessary) . .. .. . ..... ...................... . U) 6 241

Yi 7a Total groas unrelated business revenue from Part VIII , r 4 , column { ^^^Q,,, , • . 74 2,610,511.

b Net unrelated business taxable income from Form 994 34 . ........... .[G ............. .... 7b 0 .

Prior Year Current Year

8 Contnbutiols and grants (Part VIII , Una 1h) ,•,, ,,,, ,,, , , ,,, , ^ C- 5, 931,874 . 424 668,

9 Program service revenue PartVIII, line 2 ) 947, 017,102 , 170,122,670,

10 Investment Income (Part VIII , column (,A), lines 3, 4, and 7 374,235 . 907,319.

11 Other revenue (Part VIII, column (N , fines 5, 6d, 8c, 9c, 10e, and 119) . ,•,•••,,, •„• • - 372,667. -71,165,

12 Total revenue • add Ines 8th rough 11 must equal Part VIII, column ins 1 952 , 950544 . 171,363,492.

13 Grants and similar amounts paid (Part IX column (A), lines 1-3) ••,,,,•••,_ ...... .......... , 403 r685. 99,743.

14 Benefits paid to or for members (Part IX, column (A), line 4) . ................... ........

15 Salaries, other compensation , employee benefrts (Part IX, column (A), Ones 5-10) 515 , 563 , 502. 89 , 381, 254,

18a Professional fundralsing fees (Part IX, column (Al, fine 11a) ...................................

b Total fundraising expenses (Part DC, column (D), line 26) ►17 Other expenses (Part lx column {r4), lines 11 a-1 Id , 11 f•24f) . ............................. . 396,499,188 . 71,901,990,

18 Total expenses. Add Ones 13.17 (must equal Part IX column (A), line 25) ,.,.,,•••• ,•., .,,•, 912 ,466 , 375, 161, 382, 907.

19 Revenue less expenses . Subtract line 18 from line 12 ... ................... 40,484 , 169. 10 , 000,505,

og Be innin of Year End of Year

20 Total assets (Part X, llnelS) .„ 651,776 , 498, 648 , 635,682,^ce

21 Total liabilities (Pert x line26) 386,681 , 343, 395,432,242.

22 Net assets or fund balances. Subtract Ins 21 from line 20 .............. ......... 265, 095 155. 253, TOE, 440,

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Form 990 (2008) Sanford Health Group Return 46-0462161 Page 2

Part II I I Statement of Program Service Accomp l ishments (see instructions)

1 Briefly describe the organization 's mission : See Schedule 0 for Continuation

Sanford Health ' s mission statement , " Dedicated to the Work of

Healing ," is supported by a str ong vi s i on of improving the human

condition through patient care, education and research . More than just

words , the Sanford Mission and visions statements are embodi ed by

2

3

4

Did the organization undertake any significant program services during the year which were not listed on

the prior Form 990 or 990-EZ?

If "Yes", describe these new services on Schedule 0.

Did the organization cease conducting , or make significant changes in how it conducts, any program services?

If "Yes° , describe these changes on Schedule 0.

Describe the exempt purpose achievements for each of the organization 's three largest program services by expenses.

Section 501 (c)(3) and 501 (c)(4) organizations and section 4947 (a)(1) trusts are required to report the amount of grants and

allocations to others , the total expenses , and revenue , if any , for each program service reported.

See Schedule 0 for Continuation(s)

=Yes Q No

DYes No

4a (Code: )(Expenses $ 68,859 , 534. including grantsof$ 78,430 , )(Revenue$

Sanford USD Medical Center is the largest tertiary medical facility in

93 , 804,259.)

the region providing a variety of healthcare services. Sanford USD

Medical Center has Centers of Excellence in the following areas: heart

& vascular , children ' s , cancer , neuroscience , trauma , orthopedics , and

women ' s , which supports our patient centered approach to care.

Sanford ' s new Children ' s Hospital opened in March of 2009 , seeing over

'29,000 pediatric patients , both inpatient and outpatient , within the

first year . This Castle of Care serves the healthcare needs of

pediatric patients in South Dakota , North Dakota , Minnesota , Iowa , and

Nebraska locally ; as well as through our World Clinic in Duncan,

Oklahoma . Our model of CARE focuses on providing excellence in

Clinical services , Advocacy, Research and Education . The team of over

4b (Code: ) (Expenses $ 46,026 , 661. including grants of $ 0 . ) (Revenue $

Sanford Clinic has 264 physicians representing 70 specialties.

44,268,834.)

Supporting the 5 Centers of Excellence of the Sanford integrated he a lth

system , Sanford Clinic physicians and clinical teams provide services

in Cancer, Women ' s, Heart and Vascular , Childr e n ' s , Surgery and Trauma,

Neuroscience / Orthopedics , and Primary Care. In Cancer Services,

multidisciplinary care is a hallmark of the services , and this year the

development of a pinnacle service in Head and Neck Cancer which

includes NIH funded research in HPV. Women ' s services span the ent ire

clinical services spectrum and integrated medicine services including a

Medical Spa . Based in expert obstetrics and gynecology clinical

services , the physician experts provide urogynecology , reproductive

endocrinology , gynecology / oncology , genetic counseling, and materna l

4c (Code : ) (Expenses $ 25,557 , 521. including grants of $ 21 , 313. ) (Revenue $

Sanford Health Network supports community healthcare facilities in

30,669,499.)

providing care close to home and includes 23 hospitals , 12 nursing

homes , and 18 assisted and congregate living facilities across South

Dakota , Iowa , Minnesota , Nebraska , and North Dakota . Sanford supports a

network of owned , leased , managed , and associate facilities to ensure

that necessary healthcare services across a broad range of medical and

surgical specialties are delivered locally in this wide service area.

Sanford Health Network ' s commitment to local healthcare is clearly

evident in its community - based leadership and local Board involvement.

Technology deployment in the form of our health system ' s fully

integrated clinical and financial information system , called docZ, has

4d Other program services . ( Describe in Schedule 0.)

(Expenses $ 1,044 , 930. including grants of $ ) (Revenue $ 1 , 380 , 078.)

4e Total program service expenses 00. $ 141 , 488 646. (Must equal Part lY, Line 25, column (B).)

83200212-18-08

214300514 140705 HEALTHGROUP 2008.05060 Sanford Health Group Return

Form 990 (2008)

EALTHG2


Part IV I Checklist of Required Schedules

Yes No

1 Is the organization described in section 501 (c)(3) or 4947(a)(1) (other than a private foundation)?

If "Yes, " complete Schedule A - 1 X

2 Is the organization required to complete Schedule B, Schedule of Contributors? 2 X

3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for

public office? If "Yes," complete Schedule C, Part 1 3 x

4 Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If "Yes, " complete Schedule C, Part II 4 X

5 Section 501(c)(4), 501(c)(5), and 501(c)(6) organizations. Is the organization subject to the section 6033(e) notice and

reporting requirement and proxy tax? If 'Yes," complete Schedule C, Part Ill 5

6 Did the organization maintain any donor advised funds or any accounts where donors have the right to provide advice

on the distribution or investment of amounts in such funds or accounts? If "Yes," complete Schedule D, Part 1 6 X

7 Did the organization receive or hold a conservation easement, including easements to preserve open space,

the environment, historic land areas, or historic structures? If "Yes," complete Schedule D, Part 11 7 X

8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes, " complete

Schedule D, Part III 8 X

9 Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide

credit counseling, debt management, credit repair, or debt negotiation services? If "Yes," complete Schedule D, Part IV 9 X

10 Did the organization hold assets in term, permanent, or quasi-endowments? If 'Yes," complete Schedule D, Part V 10 X

11 Did the organization report an amount in Part X, lines 10, 12, 13, 15, or 25?

If 'Yes,' complete Schedule 0, Parts Vl, VII, VIII, I)4 or X as applicable - 11 X

12 Did the organization receive an audited financial statement for the year for which it is completing this return that was

prepared in accordance with GAAP? If "Yes,' complete Schedule D, Parts Xl, Xll, and Xlll 12 X

13 Is the organization a school as described in section 170(b)(1)(A)(ii)? If 'Yes,' complete Schedule E 13 X

14a Did the organization maintain an office, employees, or agents outside of the U.S.? 14a x

b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business,

and program service activities outside the U.S.? If 'Yes,' complete Schedule F, Part I 14b x

15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity

located outside the United States? If "Yes,' complete Schedule F, Part 11 15 X

16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals

located outside the United States? If "Yes, 'complete Schedule F, Part Ill 16 X

17 Did the organization report more than $15,000 on Part IX, column (A), line 11e? If "Yes," complete Schedule G, Part 1 17 X

18 Did the organization report more than $15,000 total on Part VIII, lines 1c and 8a? If "Yes," complete Schedule G, Part 11 18 X

19 Did the organization report more than $15,000 on Part VIII, line 9a? If 'Yes, " complete Schedule G, Part 111 19 X

20 Did the organization operate one or more hospitals? If "Yes," complete Schedule H 20 X

21 Did the organization report more than $5,000 on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and /I 21 X

22 Did the organization report more than $5,000 on Part IX, column (A), line 2? If 'Yes,' complete Schedule 1, Parts I and 111 22 X

23 Did the organization answer 'Yes" to Part VII, Section A, questions 3, 4, or 5? If "Yes,' complete Schedule J 23 X

24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the

last day of the year, that was issued after December 31, 2002? If 'Yes,' answer questions 24b-24d and complete Schedule K.

If 'No", go to question 25 24a x

b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? 24b x

c Did the organization maintain an escrow account other than a refunding escrow at any time during the year to defease

any tax-exempt bonds? - 24c x

d Did the organization act as an 'on behalf of' issuer for bonds outstanding at any time during the year? 24d X

25a Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a

disqualified person during the year? If 'Yes," complete Schedule L, Part I - - - 25a x

b Did the organization become aware that it had engaged in an excess benefit transaction with a disqualified person from a

prior year? If "Yes," complete Schedule L, Part I - - 25b x

26 Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified

person outstanding as of the end of the organization's tax year? If 'Yes," complete Schedule L, Part 11 26 X

27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, or substantial

contributor, or to a person related to such an individual? If 'Yes,' complete Schedule L, Part 111 27 X

Form 990 (2008)

83200312-18-08

314300514 140705 HEALTHGROUP 2008.05060 Sanford Health Group Return HEALTHG2


Part IV I Checklist of Required Schedules (continued)Yes No

28 During the tax year, did any person who is a current or former officer, director, trustee, or key employee:

a Have a direct business relationship with the organization (other than as an officer, director, trustee, or employee), or an

indirect business relationship through ownership of more than 35% in another entity (individually or collectively with other

person(s) listed in Part VII, Section A)? If 'Yes," complete Schedule L, Part IV 28a X

b Have a family member who had a direct or indirect business relationship with the organization?

If "Yes, " complete Schedule L, Part IV 28b x

c Serve as an officer, director, trustee, key employee, partner, or member of an entity (or a shareholder of a professional

corporation) doing business with the organization? If "Yes, ° complete Schedule L, Part IV 28c X

29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes, " complete Schedule M 29 X

30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation

contributions? If 'Yes," complete Schedule M 30 X

31 Did the organization liquidate, terminate, or dissolve and cease operations?

If "Yes, " complete Schedule N, Part 1 31 X

32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes," complete

Schedule N, Part /1 32 X

33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations

sections 301.7701-2 and 301.7701-3? If "Yes,' complete Schedule R, Part 1 33 X

34 Was the organization related to any tax-exempt or taxable entity?

If "Yes,' complete Schedule R, Parts ll, Ill, IV, and V, line 1 - 34 X

35 Is any related organization a controlled entity within the meaning of section 512(b)(13)?

If "Yes,' complete Schedule R, Part V, line 2 35 X

36 Section 501(c)(3) organizations . Did the organization make any transfers to an exempt non-charitable related organization?

If "Yes," complete Schedule R, Part V, line 2 36 X

37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization

and that is treated as a partnership for federal income tax purposes? If "Yes,' complete Schedule R, Part VI 37 X

Form 990 (2008)

83200412-18-08


Farm 990 (2008) Sanford Health Group Return 46-0462161 Page 55

Part Statements Regarding Other IRS Filings and Tax Compliance

Yes No

la Enter the number reported in Box 3 of Form 1096, Annual Summary and Transmittal of

U.S. Information Returns. Enter -0- if not applicable la

b Enter the number of Forms W-2G included in line 1 a. Enter -0- if not applicable 1b

c Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming

(gambling) winnings to prize winners?

2a Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements,

filed for the calendar year ending with or within the year covered by this return 2a

b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note . If the sum of lines 1 a and 2a is greater than 250, you may be required to e-file this return. (see instructions)

3a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return?

b If Yes,' has it filed a Form 990-T for this year? If No, " provide an explanation in Schedule 0

4a At any time dunng the calendar year, did the organization have an interest in, or a signature or other authority over, a

financial account in a foreign country (such as a bank account, securities account, or other financial account)?

b If Yes,' enter the name of the foreign country: ►See the instructions for exceptions and filing requirements for Form TD F 90-22.1, Report of Foreign Bank and

Financial Accounts

5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?

b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?

c If Yes,' to question 5a or 5b, did the organization file Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited

Tax Shelter Transaction?

6a Did the organization solicit any contributions that were not tax deductible?

b If 'Yes,' did the organization include with every solicitation an express statement that such contributions or gifts

were not tax deductible? _

7 Organizations that may receive deductible contributions under section 170(c).

a Did the organization provide goods or services in exchange for any quid pro quo contribution of more than $75?

b If Yes," did the organization notify the donor of the value of the goods or services provided?

c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required

to file Form 8282?

d If 'Yes,' indicate the number of Forms 8282 filed during the year 7d

e Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal

benefit contract?

f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?

g For all contributions of qualified intellectual property, did the organization file Form 8899 as required?

h For contributions of cars, boats, airplanes, and other vehicles, did the organization file a Form 1098-C as required?

8 Section 501 ( c)(3) and other sponsoring organizations maintaining donor advised funds and section 509(a)(3)

supporting organizations . Did the supporting organization, or a fund maintained by a sponsoring organization, have

excess business holdings at any time during the year?

9 Section 501(c)(3) and other sponsoring organizations maintaining donor advised funds.

a Did the organization make any taxable distributions under section 4966?

b Did the organization make a distribution to a donor, donor advisor, or related person?

10 Section 501(c)(7) organizations . Enter. N/A

a Initiation fees and capital contributions included on Part VIII, line 12 10a

b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities lob

11 Section 501(c)( 12) organizations . Enter N/A

a Gross income from members or shareholders 118

b Gross income from other sources (Do not net amounts due or paid to other sources against

amounts due or received from them.) 11b

12a Section 4947(a)(1) non-exempt charitable trusts . Is the organization filing Form 990 in lieu of Form 1041?

b If Yes.' enter the amount of tax-exempt interest received or accrued dunno the year N/A 112b

qa x

5a X

5b X

5c

6a X

6b

7a x

7c 1 1 X

7e X

7f X

7g

7h

8 x

9a X

9b X

Form 990 (2008)

83200512-18-08



Part vl Governance , Management, and Disclosure (Sections A, B, and C request information about policies not required by theInternal Revenue Code.)

Section A. Governing Body and ManagementYes No

For each " Yes' response to lines 2- 7b below, and for a "No" response to lines 8 or 9b below, describe the circumstances,

processes, or changes in Schedule O. See instructions

1a Enter the number of voting members of the governing body la 5

b Enter the number of voting members that are independent lb 1

2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other

officer , director, trustee , or key employee? 2 X

3 Did the organization delegate control over management duties customarily performed by or under the direct supervision

of officers , directors or trustees, or key employees to a management company or other person? 3 X

4 Did the organization make any significant changes to its organizational documents since the prior Form 990 was filed? 4 X

5 Did the organization become aware during the year of a material diversion of the organization 's assets? 5 X

6 Does the organization have members or stockholders? 6 X

7a Does the organization have members , stockholders , or other persons who may elect one or more members of the

governing body? 7a X

b Are any decisions of the governing body subject to approval by members , stockholders , or other persons? 7b X

8 Did the organization contemporaneously document the meetings held or written actions undertaken during the year

by the following:

a The governing body? 8a X

b Each committee with authority to act on behalf of the governing body? _ 8b X

9a Does the organization have local chapters , branches , or affiliates? 9a X

b If 'Yes ,' does the organization have written policies and procedures governing the activities of such chapters , affiliates,

and branches to ensure their operations are consistent with those of the organization? 9b

10 Was a copy of the Form 990 provided to the organization 's governing body before it was filed? All organizations must

describe in Schedule 0 the process , if any, the organization uses to review the Form 990 10 X

11 Is there any officer, director or trustee, or key employee listed in Part VII, Section A, who cannot be reached at the

organization 's mailin g address? If "Yes," provide the names and addresses in Schedule 0 11 X

Section B. PoliciesYes No

12a Does the organization have a written conflict of interest policy? If "No,"go to line 13 12a X

b Are officers , directors or trustees , and key employees required to disclose annually interests that could give rise

to conflicts? 12b X

c Does the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes," describe

in Schedule 0 how this is done 12c X

13 Does the organization have a written whistleblower policy? 13 X

14 Does the organization have a written document retention and destruction policy? 14 X

15 Did the process for determining compensation of the following persons include a review and approval by independent

persons , comparability data , and contemporaneous substantiation of the deliberation and decision:

a The organization 's CEO, Executive Director, or top management official? 15a X

b Other officers or key employees of the organization? 15b X

Describe the process in Schedule O. (see instructions)

16a Did the organization invest in, contribute assets to , or participate in a joint venture or similar arrangement with a

taxable entity during the year? 16a X

b If 'Yes ,' has the organization adopted a written policy or procedure requiring the organization to evaluate its participation

in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization's

exempt status with respect to such arrangements? 16b X

Section C. Disclosure17 List the states with which a copy of this Form 990 is required to be filed "MN

18 Section 6104 requires an organization to make its Forms 1023 (or 1024 if applicable), 990, and 990-T (501 (c)(3)s only) available for

public inspection . Indicate how you make these available . Check all that apply.

0 Own websrte Another's website [] Upon request

19 Describe in Schedule 0 whether (and if so , how), the organization makes its governing documents , conflict of interest policy , and financial

statements available to the public.

20 State the name, physical address, and telephone number of the person who possesses the books and records of the organization- ►JoAnn Kunkel , CFO Health Services - 605-333-6549

1305 W 18th Street , Sioux Falls , SD 5710583200612-18 -08 Form 990 (2008)



art Vil Compensation of Officers, Directors , Trustees, Key Employees, Highest CompensatedEmployees , and Independent Contractors

Section A. Officers, Directors , Trustees , Key Employees, and Highest Compensated Employees

la Complete this table for all persons required to be listed. Use Schedule J-2 if additional space is needed.

• List all of the organization' s current officers, directors, trustees (whether individuals or organizations), regardless of amount of compensation,and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

• List the organization' s five current highest compensated employees (other than an officer, director, trustee , or key employee) who receivedreportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the organization and any relatedorganizations.

• List all of the organization' s former officers, key employees, and highest compensated employees who received more than $100,000 ofreportable compensation from the organization and any related organizations.

• List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of the organization,more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order individual trustees or directors; institutional trustees ; officers; key employees; highest compensated employees;and former such persons.

O Check this box if the organization did not compensate any officer, director, trustee , or key employee.

(A) (B) (C) (D) (E) (F)

Name and Title Average Position Reportable Reportable Estimatedhours (check all that apply) compensation compensation amount ofper from from related otherweek c the organizations compensation

rorganization (W-2/1099-MISC) from the

(W-2/1099-MISC) organization

g 85 and relateds_

° E€ organizations

_ s

Becky Nelson

Director-SHN 60.00 X 0. 0. 0.

Beth Lapka, MD

Member-SC 60.00 X 0. 0. 0.

Candace Zeigler, MD

Director-SMC 60.00 X 0. 0. 0.

Cindi Slack

Sec/Treas-SHH 60.00 X 0. 0. 0.

Craig Uthe, MD

Member-SC 60.00 X 0. 0. 0.

Dave Austad


David L. Jueneman


David P. Munson, MD


Don Damstra

Sec/Treas-SHN 0.50 X 0. 0. 0.

Don Jacobs


Donavan Flatgard


Elizabeth J. Gravley, MD

Member-SC 60.00 X 0. 0. 0.

Eric S. Rolfsmeyer, MD

Member-SC 60.00 X 0. 0. 0.

Gene Lunn

Chairman-SHN 0.50 X 0. 0. 0.

Greg A. Schultz, MD

Member-SC 60.00 X 0. 0. 0.

James Wallace, MD

Member-SC 60.00 X 0. 0. 0.

Jeffrey A. Murray, MD

Member-SC 60.00 X 0. 0. 0.

832007 12-18-08 Form 990 (2008)


Form 990(2008) Sanford Health Group Return 46-0462161 Page 8

Mart Vill Section A. Officers . Directors - Trustees . Key Emnlovees. and Hiahest Compensated Emninvees trnnt,n,ueri)

(A) (B) (C) (D) (E) (F)

Name and title Average Position Reportable Reportable Estimatedhours (check all that apply) compensation compensation amount ofper from from related otherweek the organizations compensation

organization (W-2/1099-MISC) from theK (W-2/1099-MISC) organizationT

- and relateds_

w E organizationso ac s E

Jerel E. Tieszen, MD

Member-SC 60.00 X 0. 0. 0.

Jerry Freeman, MD

Chairman-SMC 60.00 X 0. 0. 0.

Jim Kerr

Vice Chairman-SHN 0.50 X 0. 0. 0.

Jim Wilcox


John C. Vander Woude, MD

Member-SC 60,00 X 0, 0. 0.

Relby K. Krabbenhoft

President/CEO 60.00 X 0. 0. 0.

Kenneth H. Rogotzke, DO


Kenneth M. Johnson, MD

Member-SC 60,00 X 0. 0. 0.

Laurie B. Landeen, MD

Member-SC 60.00 X 0. 0. 0.

LuAnn M. Eidsnees, MD

Director-SMC 60.00 X 0. 0, 0.

1 b Total - 0. 0. 0,

2 Total number of individuals (including those in 1 a) who received more than $100,000 in reportable

compensation from the organization 0Yes No

3 Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on

line 1 a? If °Yes, ° complete Schedule J for such individual 3 X

4 For any individual listed on line 1 a, is the sum of reportable compensation and other compensation from the organization

and related organizations greater than $150,000? If °Yes, ° complete Schedule J for such individual 4 X

5 Did any person listed on line 1 a receive or accrue compensation from any unrelated organization for services rendered to

the organization? If "Yes," complete Schedule J for such person 5 XSection B. Independent Contractors

1 Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from

thw nrnannatinn NONE

(A)Name and business address

(B)Description of services

(C)Compensation

2 Total number of independent contractors (including those in 1) who received more than $100,000 in compensation

from the organization No- 0

See Schedule J-2 for Part VII, Section A Continuation Form 990(2008)

832008 12-18-08



Part Statement of Revenue(A) (B) (C) (D)

Total revenue Related or Unrelated Revenueexcluded from

exempt function business tax underrevenue revenue sections 512,

513,or514

4 1 a Federated campaigns laCCo b Membership dues lb

rnc Fundraising events 1c

•BN d Related organizations 1d 213, 676.

UE e Government grants (contributions) le 210, 992.

3 f All other contributions, gifts, grants, and

similar amounts not included above ifboCIDOC

9 Noncash contributions included in lines la-If $

In Total. Add lines 1a-1f ► 424,668.

Business Codedv

2 a Patient services 621400 106,417,458. 106,417,458,

Zd b Medicare/Medicaid 621400 55,726,628. 55 726,628,

NcdC SMC reference lab revs 621500 2,723,181. 228,837, 2,494 344, 0.

M 4) d Other program rev. 621400 2,017,194. 2,017,194.

o e Home health care, etc 621110 1,771 431. 1 , 771 , 431.

a f All other program service revenue 621400 1 , 466 , 778. 116,985. 116,167. 1,233 626,

g Total. Add lines 2a-2f ► 170,122 670,

3 Investment income (including dividends, interest, and

other similar amounts) ► 102,291. 102 291,

4 Income from investment of tax-exempt bond proceeds ►5 Royalties ►

() Real (ii) Personal

6 a Gross Rents 132,107.

b Less: rental expenses 203,272,

c Rental income or Ooss) -71,165.

d Net rental income or (loss) ► -71,165. -71 , 165.

7 a Gross amount from sales of (i) Securities (i) Other

assets other than inventory 805, 028.

b Less- cost or other basis

and sales expenses

c Gain or(loss) 805 028,

d Net gain or(loss) ► 805,028, 805 , 028.

8 a Gross income from fundraising events (not

including $ of

4) contributions reported on line 1 c). See

Part IV, line 18 a

b Less: direct expenses b

c Net income or (loss) from fundraising events ►9 a Gross income from gaming activities. See

Part IV, line 19 a

b Less- direct expenses •. b

c Net income or (loss) from gaming activities ►10 a Gross sales of inventory, less returns

and allowances a

b Less: cost of goods sold _ b

c Net income or (loss) from sales of invento ry

Miscellaneous Revenue Business Code

11 a

b

c

d All other revenue

e Total. Add lines 11a-11d ►12 Total Revenue. Addl i nes ,h,2g,3.4.5.6d,7d,8c,9c,foc,andIle ► 171,383 492, 166 278,533, 2,610,511. 2 , 069 , 780.

83200902-02-09 Form 990 (2008)


Fornm990(2008) Sanford Health Group Return 46-0462161 Page10

Part IX I Statement of Functional ExpensesSection 501 (c)(3) and 501(c )(4) organizations must complete all columns.

All other organizations must complete column (A) but are not required to complete columns ( B), (C), and (D).

Do not include amounts reported on lines 6b,7b, 8b, 9b, and 10b of Part VIII,

Total expenses Program serviceexpenses

Management andgeneral expenses

Fun raisingexpenses

1 Grants and other assistance to governments and

organizations in the U.S. See Part IV, line 21 96,243. 96,243.

2 Grants and other assistance to individuals in

the U.S. See Part IV, line 22 31500. 3 , 500.

3 Grants and other assistance to governments,

organizations, and individuals outside the U.S.

See Part IV, lines 15 and 16

4 Benefits paid to or for members

5 Compensation of current officers, directors,

trustees, and key employees 5,200 201. 5,200,201.

6 Compensation not included above, to disqualified

persons (as defined under section 4958(f)(1)) and

persons described in section 4958(c)(3)(B)

7 Othersalanesandwages _ 68,648 ,526. 68 196 364. 452,162.

8 Pension plan contributions (include section 401(k)

and section 403(b) employer contributions) 2,348,255. 2,228,340. 119,915.

9 Other employee benefits 8,325,892. 6 , 965 , 917. 1,359,975.

10 Payroll taxes 4,858 380. 4 , 504,791. 353,589.

11 Fees for services (non-employees):

a Management

b Legal 43,632. 43,632.

c Accounting 555 040. 555,040.

d Lobbying

e Professional fundraising services. See Part IV, line 17

f Investment management fees

g Other 7,005 496. 6,088,123. 917,373.

12 Advertising and promotion 437, 626. 257 962. 179 664.

13 Office expenses 5,784,186. 4,975 361. 808,825.

14 Information technology 5,505 , 898. 594 066. 4, 911, 832.

15 Royalties

16 Occupancy _ 3,991 146. 3 , 089,601. 901,545.

17 Travel 492,766. 432 578. 60,188.

18 Payments of travel or entertainment expenses

for any federal, state, or local public officials

19 Conferences, conventions, and meetings 277 881. 231 941. 45,940.

20 Interest 1,915,800. 1 , 321,968. 593,832.

21 Payments to affiliates

22 Depreciation, depletion, and amortization 7,729,537. 5 , 765,312. 1,964,225.

23 Insurance 1,410,319. 1,251 788. 158,531.

24 Other expenses. Itemize expenses not coveredabove. (Expenses grouped together and labeledmiscellaneous may not exceed 5% of totalexpenses shown on line 25 below.)

a Medical Supplies 22 649,860. 22,649 026. 834.

b Bad Debt 7 , 044 , 375. 7,012,023. 32,352.

c intercompany Purchased 5,695, 844. 4 ,796 809. 899,035.

d Other direct 1 , 362,584. 1,026,933. 335,651.

e

f All other expenses

25 Total functional expenses . Add lines 1 through 24f 161 , 382,987. 141 , 488 646 . 19,894,341. 0.

26 Joint Costs . Check here ► x if following

SOP 98-2. Complete this line only if the organization

reported in column (B) joint costs from a combined

educational campaign and fundraising solicitation

832010 12-18-08 Form 990 (2008)



Part X Ba lance Sheet

(A) (B)Beginning of year End of year

1 Cash - non-interest-bearing 2,577 , 765. 1 2 , 545,411.

2 Savings and temporary cash investments 26,497,716. 2 18 , 579,125.

3 Pledges and grants receivable, net 3

4 Accounts receivable, net 148,351,109. 4 147,921,695.

5 Receivables from current and former officers, directors, trustees, key

employees, or other related parties. Complete Part II of Schedule L 266 322. 5 243,251.

6 Receivables from other disqualified persons (as defined under section

4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete

Part II of Schedule L 6

j2 7 Notes and loans receivable, net 6,562 , 388. 7 6,553,909.

U) 8 Inventories for sale or use 7,099,711. 8 6,860, 7 66.

9 Prepaid expenses and deferred charges 5,160 138. 9 2, 736, 847.

10a Land, buildings, and equipment: cost basis 10a 720 , 872,452.

b Less: accumulated depreciation. Complete

Part VI of Schedule D 10b 286 853, 350. 428, 580, 737. 10c 434 019 102.

11 Investments - publicly traded securities 1,142 , 560. 11 4,776 , 121.

12 Investments - other securities. See Part IV, line 11 35,509. 12 31,166.

13 Investments - program-related See Part IV, line 11 7,488,777. 13 7,292 , 246.

14 Intangible assets 10,435 710. 14 10,790 970.

15 Other assets. See Part IV, line 11 7,578,056. 15 6,285 073.

16 Total assets. Add lines 1 through 15 must equal line 34 651, 776 498. 16 648 635 682.

17 Accounts payable and accrued expenses 91,573,475. 17 100 568 308.

18 Grants payable - - 126, 193. 18 121, 621.

19 Deferred revenue 487, 758. 19 441 213.

20 Tax-exempt bond liabilities 247,546,825. 20 247,529 , 558.

0 21 Escrow account liability. Complete Part IV of Schedule D 21

22 Payables to current and former officers, directors, trustees, key employees,

T_ highest compensated employees, and disqualified persons. Complete Part II

of Schedule L 22

23 Secured mortgages and notes payable to unrelated third parties 10,845,975. 23 10 , 805,010.

24 Unsecured notes and loans payable 170,000. 24 125 000.

25 Other liabilities. Complete Part X of Schedule D - 35,931,117. 25 35, 841 532.

26 Total liabilities. Add lines 17 through 25 386, 681, 343. 26 395 432 242.

Organizations that follow SFAS 117, check here bo- X and complete

lines 27 through 29, and lines 33 and 34.

c 27 Unrestricted net assets 264, 760, 913. 27 252, 869,198.

M 28 Temporarily restricted net assets 40,591. 28 40 , 591.

29 Permanently restricted net assets 293,651. 29 293 , 651.

LL Organizations that do not follow SFAS 117, check here NO- El and

o complete lines 30 through 34.

30 Capital stock or trust principal, or current funds 30

Q 31 Paid-in or capital surplus, or land, building, or equipment fund 31

32 Retained earnings, endowment, accumulated income, or other funds 32

Z 33 Total net assets or fund balances - 265,095,155. 33 253 203,440.

34 Total liabilities and net assets/fund balances 651, 776 , 498. 34 648, 635 682.

Part Al I Financial Statements and Renortina

1 Accounting method used to prepare the Form 990 : 0 Cash 0 Accrual El Other

2a Were the organization ' s financial statements compiled or reviewed by an independent accountant? 2a X

b Were the organization 's financial statements audited by an independent accountant? 2b X

c If 'Yes ' to lines 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit,

review , or compilation of its financial statements and selection of an independent accountant? 2c

3a As a result of a federal award , was the organization required to undergo an audit or audits as set forth in the Single Audit

Act and OMB Circular A-133? 3a X

b If 'Yes ,' did the organization undergo the required audit or audits? . . 315 X

832011 12-18-08 Form 990 (2008)


SCHEDULE A Public Charity Status and Public SupportOMB No 1545-0047

(Form 990 or 990-EZ)To be completed by all section 501(c)(3) organizations and section 4947(a)(1)

Department of the Treasurynonexempt charitable trusts.

Open to PublicInternal Revenue Service Attach to Form 990 or Form 990-EZ. 10- See separate instructions. Inspection

Sanford Health Group Return 46-0462161

Part Reason for u iC Charity Status (All organizations must complete this part.) (see instructions)

The organization is not a private foundation because it is: (Please check only one organization.)

I El A church, convention of churches, or association of churches described in section 170( b)(1)(A)(i).

2 0 A school described in section 170(b)(1)(A)(Ii). (Attach Schedule E.)

3 El A hospital or a cooperative hospital service organization described in section 170(b)(1)(AXiii). (Attach Schedule H.)

4 Q A medical research organization operated in conjunction with a hospital described in section 170(b)(1)(A)(iii). Enter the hospital's name,

city, and state:

5 El An organization operated for the benefit of a college or university owned or operated by a governmental unit described in

section 170( b)(1)(A)(iv). (Complete Part II.)

6 El A federal, state , or local government or governmental unit described in section 170(b)(1)(A)(v).

7 Q An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in

section 170(b)(1)(A)(vi). (Complete Part II.)

8 0 A community trust described in section 170(b)(1)(A)(vi ). (Complete Part II.)

9 Q An organization that normally receives: (1) more than 33 1/3% of Its support from contributions, membership fees, and gross receipts from

activities related to its exempt functions - subject to certain exceptions, and (2) no more than 33 1/3% of its support from gross investment

income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975.

See section 509(a)(2). (Complete the Part III.)

10 0 An organization organized and operated exclusively to test for public safety . See section 509(a)(4). (see instructions)

11 An organization organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or

more publicly supported organizations described in section 509(a)(1) or section 509(a)(2). See section 509(a)(3). Check the box that

describes the type of supporting organization and complete lines 11 is through 11 h.

a 0 Type I b 0 Type II c El Type III - Functionally integrated d El Type III -Other

e By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than

foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).

f If the organization received a written determination from the IRS that it is a Type I, Type II, or Type III

supporting organization, check this box El

g Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?

(i) A person who directly or indirectly controls, either alone or together with persons described in (u) and (u) below, Yes No

the governing body of the supported organization ? 11g(i) X

(ii) A family member of a person described in () above? _ 11g(ii) X

(iii) A 35% controlled entity of a person described in () or (I) above? 11g(iii) X

h Provide the following information about the organizations the organization supports.

Name of supported()organization

ll EIN()

(iii)Type oforganization

described on lines 1-9above or IRC section

(iv) Is the organizationcol. (i) listed in your

governing document?

(v) Did you notify therganization in col .

(i) of your support?

(vi) Is therorganization in col.

i g anlzed in the() org

U.S.?

Amount of(vii)support

(see instructions )) Yes No es No es No

Sanford Health 1-1527032 01(C)3 X X X 0.

Total

LHA For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule A (Form 990 or 990-EZ) 2008

832021 12-17-08


Schedule A (Form 990 or 990-EQ 2008 Page 2a support Schedu l e for Organizations escria in Sections iv and vi

(Complete only if you checked the box on line 5, 7, or 8 of Part I.)

Section A. Public Support

Calendar year (or fiscal year beginning (a) 2004 (b) 2005 (c) 2006 (d) 2007 (e) 2008 (f) Total

1 Gifts, grants, contributions, and

membership fees received. (Do not

include any "unusual grants.")

2 Tax revenues levied for the organ-

ization's benefit and either paid to

or expended on its behalf

3 The value of services or facilities

furnished by a governmental unit to

the organization without charge

4 Total. Add lines 1 -3

5 The portion of total contributions

by each person (other than a

governmental unit or publicly

supported organization) included

on line 1 that exceeds 2% of the

amount shown on line 11,

column (f)

6 Public Support. Subtract line 5 from line 4

Section B. Total SupportCalendar year (or fiscal year beginning (a) 2004 (b) 2005 (c) 2006 (d) 2007 (e) 2008 (f) Total

7 Amounts from line 4

8 Gross income from interest,

dividends, payments received on

securities loans, rents, royalties

and income from similar sources

9 Net income from unrelated business

activities, whether or not the

business is regularly carried on

10 Other income. Do not include gain

or loss from the sale of capital

assets (Explain in Part IV)

11 Total support. Add lines 7 through 10

12 Gross receipts from related activities, etc. (see instructions)

13 First five years. If the Form 990 is for the organization ' s first , second , third, fourth, or fifth tax year as a section 501(c)(3)

organization, check this box and stop here ►Sec ion Computation o Publ ic Support Percentage

14 Public support percentage for 2008 (line 6, column (f) divided by line 11, column (f)) 14 %

15 Public support percentage from 2007 Schedule A, Part IV-A, line 26f 15 %

16a 33 1 /3% support test - 2008. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box and

stop here . The organization qualifies as a publicly supported organization ►0b 33 1/3% support test - 2007. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this box

and stop here . The organization qualifies as a publicly supported organization - - ► El17a 10% -facts -and-circumstances test - 2008. If the organization did not check a box on line 13, 16a, or 16b, and line 14 is 10% or more,

and if the organization meets the 'facts-and-circumstances' test, check this box and stop here . Explain in Part IV how the organization

meets the 'facts-and-circumstances' test. The organization qualifies as a publicly supported organization ►b 10% -facts-and-circumstances test - 2007. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line 15 is 10% or

more, and if the organization meets the 'facts-and-circumstances' test , check this box and stop here . Explain in Part IV how the

organization meets the 'facts-and-circumstances" test. The organization qualifies as a publicly supported organization ►18 Private foundation . If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and see instructions ►Q

Schedule A (Form 990 or 990-F2) 2008

83202212-17-08


A (Form 990 or 990-F2) 2008 Page 3

If you checked the box on line 9 of Part I.

Calendar year (or fiscal year beginning In)Np^ (a) 2004 (b) 2005 (c) 2006 (d) 2007 (e) 2008 (f) Total

1 Gifts, grants, contributions, and

membership fees received. (Do not

include any 'unusual grants.*)

2 Gross receipts from admissions,merchandise sold or services per-formed, or facilities furnished inany activity that is related to theorganization's tax-exempt purpose

3 Gross receipts from activities that

are not an unrelated trade or bus-

iness under section 513

4 Tax revenues levied for the organ-

ization's benefit and either paid to

or expended on its behalf

5 The value of services or facilities

furnished by a governmental unit to

the organization without charge

6 Total. Add lines 1 - 5

7a Amounts included on lines 1, 2, and

3 received from disqualified persons

b Amounts included on lines 2 and 3 received

from other than disqualified persons that

exceed the greater of 1% of the total of lines 9,

10c, 11, and 12 for the year or $5,000

c Add lines 7a and 7b

8 Public support ( Subtract line 7c fmm line 6 )

section es . l oral supportCalendar year (or fiscal year beginning in)01,- (a) 2004 (b) 2005 (c) 2006 (d) 2007 (e) 2008 (f) Total

9 Amounts from line 6

10a Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similar sources

b Unrelated business taxable income

(less section 511 taxes) from businesses

acquired after June 30, 1975

c Add lines 1Oa and 1 Ob11 Net income from unrelated business

activities not included in line 10b,whether or not the business isregularly carried on

12 Other Income. Do not include gainor loss from the sale of capitalassets (Explain in Part IV.)

13 Total support(Add lines 9, 10c, 11, and 12)

14 First five years . If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a section 501(c)(3) organization,

check this box and stop here ►0

15 Public support percentage for 2008 (line 8, column (t) divided by line 13, column (l) 15 %

16 Public support percentage from 2007 Schedule A, Part IV-A, line 27g 16 %

Section D. Computation of Investment Income Percentage

17 Investment income percentage for 2008 (line 10c, column (t) divided by line 13, column (f)) _ 17 %

18 Investment income percentage from 2007 Schedule A, Part IV-A, line 27h - - 18 %

19a 33 1 /3% support tests - 2008. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not

more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization

b 33 1 /3% support tests - 2007. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3%, and

line 18 is not more than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization ► El20 Private foundation . If the organization did not check a box on line 14, 19a, or 19b, check this box and see instructions

Schedule A (Form 990 or 990-EZ) 2008

832023 12-17-08


SCHEDULE C Political Campaign and Lobbying Activities(Form 990 or 990-EZ)

For Organizations Exempt From Income Tax Under section 501(c) and section 527

Department of the Treasury ► To be completed by organizations described below.Internal Revenue Service ► Attach to Form 990 or Form 990-EZ.

0MB No 1545-0047

Open to PublicInspection

If the organization answered "Yes," to Form 990, Part IV, line 3, or Form 990-EZ, Part VI, line 46 (Political Campaign Activities), then

• Section 501 (c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.

• Section 501(c) (other than section 501 (c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.

• Section 527 organizations: Complete Part I-A only.

If the organization answered "Yes," to Form 990, Part IV , line 4, or Form 990-EZ , Part VI, line 47 (Lobbying Activities), then

• Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B.

• Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B Do not complete Part II-A.

If the organization answered "Yes," to Form 990, Part IV, line 5 (Proxy Tax), then

• Section 501(c)(4), (5), or (6) organizations: Complete Part Ill.


art- To be completed by a ll organizations exempt under section 501(c) and section 527 organizations.See the Instructions for Schedule C for details.

1 Provide a description of the organization's direct and indirect political campaign activities in Part IV.

2 Political expenditures ► $

3 Volunteer hours

Part I-B To be completed by all organizations exempt under section 501 (c)(3).

See the Instructions for Schedule C for details.1 Enter the amount of any excise tax incurred by the organization under section 4955 ► $

2 Enter the amount of any excise tax incurred by organization managers under section 4955 ► $

3 If the organization incurred a section 4955 tax, did it file Form 4720 for this year? L-J Yes L-j No

4a Was a correction made? Yes No

b If 'Yes,' describe in Part IV.

a - To be comp leted by a ll organizations exempt under section 501 c), except section 501 (c)(3).

See the Instructions for Schedule C for details.

1 Enter the amount directly expended by the filing organization for section 527 exempt function activities ► $

2 Enter the amount of the filing organization's funds contributed to other organizations for section 527

exempt function activities - ► $

3 Total of direct and indirect exempt function expenditures. Add lines 1 and 2 and enter here and on

Form 1120-POL, line 17b ► $

4 Did the filing organization file Form 1120-POL for this year? L-J Yes No

5 State the names, addresses and employer identification number (EIN) of all section 527 political organizations to which payments were made.

Enter the amount paid and indicate if the amount was paid from the filing organization's funds or were political contributions received and

promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC).

If additional space is needed, provide information in Part IV.

(a) Name (b) Address (c) EIN (d) Amount paid fromfiling organization's

funds. If none, enter -0-.

(e) Amount of politicalcontributions received and

promptly and directlydelivered to a separatepolitical organization.

If none, enter -0-.

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule C (Form 990 or 990-EZ) 2008

832041 12-18-08


Schedule C Form 990 or 990 2008 Sanford Health Group Return 46-0462161 Page 2a - To be comp leted by organiza tions exempt under section 501(c)(3) that f i led Form 5768

(election under section 501 (h)). See the instructions for Schedule C for details.

A Check ► L-J if the filing organization belongs to an affiliated group.

B Check ► Q if the filing organization checked box A and 'limited control' provisions apply.

Limits on Lobbying Expenditures(The term "expenditures" means amounts paid or Incurred.)

1 a Total lobbying expenditures to influence public opinion (grassroots lobbying)

b Total lobbying expenditures to influence a legislative body (direct lobbying)

c Total lobbying expenditures (add lines 1 a and 1 b)

d Other exempt purpose expenditures

e Total exempt purpose expenditures (add lines 1 c and 1 d)

f Lobbying nontaxable amount. Enter the amount from the following table in both columns.

If the amount on line le, column ( a) or (b ) is: The lobbying nontaxable amount Is:

Not over $500,000 20% of the amount on line le.

Over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $t

Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1

Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,!

Over $17,000,000 $1,000,000.

(a) Filing (b) Affiliated grouporganization's totals

totals

g Grassroots nontaxable amount (enter 25% of line 11)

h Subtract line 1g from line 1a. Enter -0• if line g is more than line a

i Subtract line 1f from line 1c. Enter -0- if line f is more than line c

j If there is an amount other than zero on either line 1 h or line 1 i, did the organization file Form 4720

reporting section 4911 tax for this year? Yes No

4-Year Averaging Period Under Section 501(h)(Some organizations that made a section 501 ( h) election do not have to complete all of the five

columns below. See the instructions for lines 2a through 2f of the instructions.)

Lobbying Expenditures During 4-Year Averaging Period

Calendar year(or fiscal year beginning in )

(a) 2005 (b) 2006 (c) 2007 (d) 2008 (e) Total

2a Lobbying non-taxable amount

b Lobbying ceiling amount

(150% of line 2a, column(e))

c Total lobbying expenditures

d Grassroots non-taxable amount

e Grassroots ceiling amount

(150% of line 2d, column (e))

f Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2008

832042 12-18-08

14300514 140705 HEALTHGROUP18

2008.05060 Sanford Health Group Return HEALTHG2

Schedule C Form 990 or 990 2008 Sanford Health Group Return 46-0462161 Page 3[Partli-B To be completed by organizations exempt under section c that have NOT fi led Form 3768

(election under section 501 (h)). See the instructions for Schedule C for details.

Yes I No I Amount

1 During the year, did the filing organization attempt to influence foreign, national, state or

local legislation, including any attempt to influence public opinion on a legislative matter

or referendum, through the use of: k

a Volunteers? X

b Paid staff or management (include compensation in expenses reported on lines 1 c through 11)? X

c Media advertisements? X

d Mailings to members, legislators, or the public? X

e Publications, or published or broadcast statements? X

f Grants to other organizations for lobbying purposes? X

g Direct contact with legislators, their staffs, government officials, or a legislative body? X

h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means? X

i Other activities? If "Yes,' describe in Part IV X 2,815.

j Total lines 1 c through 11 2,815.

2a Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? X

b If 'Yes,' enter the amount of any tax incurred under section 4912

c If 'Yes,' enter the amount of any tax incurred by organization managers under section 4912

d If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year?

11-art ni-A ^ i o be compietea by all organizations exempt unaer section bul (c)(4), section bul (c)(5), or section

501 (c)(6). See the instructions for Schedule C for details.

1 Were substantially all (90% or more) dues received nondeductible by members? -

2 Did the organization make only in-house lobbying expenditures of $2,000 or less?

3 Did the organization agree to carryover lobbying and political expenditures from the

No

tartni-u i o be compietea by an organizations exempt unaer section Sul (c)(4), section 5U1(c)(o), or section

501(c)(6) if BOTH Part III-A, questions 1 and 2 are answered "No" OR if Part III-A, question 3 isanswered "Yes." See Schedule C instructions for details.

1 Dues, assessments and similar amounts from members 1

2 Section 162(e) non-deductible lobbying and political expenditures (do not include amounts of political

expenses for which the section 527(f) tax was paid).

a Current year - 2a

b Carryover from last year 2b

c Total 2c

3 Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues 3

4 If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess

does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political

expenditure next year? 4

5 Taxable amount of lobbying and political expenditures (line 2c total minus 3 and 4) 5

Part IV Supplemental Information

Complete this part to provide the descriptions required for Part I-A, line 1; Part I-B, line 4; Part I-C, line 5; and Part II-B, line 1i. Also, complete this part

for any additional information.

Part II-B Line 1(i), Other Lobbying Activities:

The filing organization has memberships in the South Dakota Association

of Healthcare Organizations (SDAHO). A percentage of membership dues

paid to SDAHO relate to lobbying expenses.

Schedule C (Form 990 or 990-FZ) 2008

832043 12-18-08


Schedule D OMB No 1545-0047

(Form 990) Supplemental Financial Statements 2008

Department of the Treasury► Attach to Form 990. To be completed by organizations that Open to Pubi

Internal Revenue Service answered "Yes," to Form 990, Part IV, line 6,7 , 8,9, 10, 11, or 12 . Inspection

Name of the organization Employer identification number


Part I Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if theorganization answered 'Yes' to Form 990, Part IV, line 6.

1 Total number at end of year

2 Aggregate contributions to (during year)

3 Aggregate grants from (during year)

4 Aggregate value at end of year

5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advised funds

are the organization's property, subject to the organization's exclusive legal control?

6 Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be used only

for charitable purposes and not for the benefit of the donor or donor advisor or other impermissible private benefit?

= Yes = No

Yes U No

Part II 1 Conservation Easements . Complete if the organization answered 'Yes' to Form 990, Part IV, line 7.

1 Purpose(s) of conservation easements held by the organization (check all that apply).

Preservation of land for public use (e . g., recreation or pleasure) O Preservation of an historically important land area

Protection of natural habitat Preservation of certified historic structure

Q Preservation of open space

2 Complete lines 2a-2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day

of the tax year.

Held at the End of the Year

a Total number of conservation easements 2a

b Total acreage restricted by conservation easements 2b

c Number of conservation easements on a certified historic structure included in (a) 2c

d Number of conservation easements included in (c) acquired after 8/17/06 2d

3 Number of conservation easements modified , transferred , released , extinguished, or terminated by the organization during the taxable

year ►4 Number of states where property subject to conservation easement is located ►5 Does the organization have a written policy regarding the periodic monitoring , inspection , violations, and

enforcement of the conservation easements it holds? Yes No

6 Staff or volunteer hours devoted to monitoring , inspecting , and enforcing easements during the year ►7 Amount of expenses incurred in monitoring , inspecting , and enforcing easements during the year ► $

8 Does each conservation easement reported on line 2(d ) above satisfy the requirements of section 170(h)(4)(B)(i)

and section 170(h)(4)(B)(ii)? 0 Yes 0 No

9 In Part XIV , describe how the organization reports conservation easements in its revenue and expense statement , and balance sheet, and

include , if applicable , the text of the footnote to the organization ' s financial statements that describes the organization 's accounting for

conservation easements.

Part Ill Organizations Maintaining Collections of Art , Historical Treasures, or Other Similar Assets.Complete if the organization answered 'Yes' to Form 990, Part IV, line 8.

la If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of art, historical

treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service, provide, in Part XIV, the text of

the footnote to its financial statements that describes these items.

b If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art, historical treasures,

or other similar assets held for public exhibition, education, or research in furtherance of public service, provide the following amounts relating to

these items:

(i) Revenues included in Form 990, Part VIII, line 1 ► $

(Ii) Assets included in Form 990, Part X ► $

2 If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide

the following amounts required to be reported under SFAS 116 relating to these items:

a Revenues included in Form 990, Part VIII, line 1 - ► $

b Assets included in Form 990, Part X ► $

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule D (Form 990) 2008

83205112-23-08


Schedule D(Form 990) 2008 Sanford Health Group Return 46-0462161 Page 2

Part III I Organizations Maintaining Collections of Art, Historical Treasures , or Other Similar Assets (continued)

3 Using the organization's accession and other records, check any of the following that are a significant use of its collection items (check all

that apply):

a Public exhibition d = Loan or exchange programs

b Scholarly research e =Other

c Preservation for future generations

4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose in Part XIV.

5 Dunng the year, did the organization solicit or receive donations of art, historical treasures, or other similar assets

to be sold to raise funds rather than to be maintained as part of the organization's collection? 0 Yes No

Part IV Trust, Escrow and Custodial Arrangements . Complete if organization answered 'Yes' to Form 990, Part IV, line 9, orreported an amount on Form 990, Part X, line 21.

1a Is the organization an agent , trustee , custodian or other intermediary for contnbutions or other assets not included

on Form 990 , Part X? Yes No

b If Yes ,' explain the arrangement in Part XIV and complete the following table:

Amount

c Beginning balance 1c

d Additions dunng the year 1d

e Distnbutions during the year le

f Ending balance if

2a Did the organization include an amount on Form 990 , Part X, line 21? L_J Yes L_J No

b If Yes ,' exp lain the arran gement in Part XIV.

PartV Endowment Funds . Complete if organization answered 'Yes' to Form 990, Part IV , line 10.

1a Beginning of year balance

b Contributions

c Investment earnings or losses

d Grants or scholarships

e Other expenditures for facilities

and programs

f Administrative expenses

g End of year balance

(a) Current year (b) Prior year (c) Two years back (d) Three years back (e) Four years back

23,464,847.

323,063.

33,882.

5,166.

23 816,626.

2 Provide the estimated percentage of the year end balance held as:

a Board designated or quasi-endowment POP- %

b Permanent endowment 100.00 %

c Term endowment 00- %

3a Are there endowment funds not in the possession of the organization that are held and administered for the organization

by: Yes No

(1) unrelated organizations - 3a(i) X

(ii) related organizations 3a(ii) X

b If Yes' to 3a(i), are the related organizations listed as required on Schedule R? 3b X

4 Describe in Part XIV the intended uses of the organization's endowment funds.

Part VI Investments - Land . Buildinas. and EauiDment. See Form 990. Part X. line 10.

Descnption of investment (a) Cost or otherbasis (investment)

(b) Cost or otherbasis (other)

(c) Depreciation (d) Book value

la Land 23,655,074. 23,655,074.

b Buildings 309,899 133. 86 549,247. 223,349,886.

c Leasehold improvements 27 128,921. 6,459,378. 20,669,543.

d Equipment 336 400,854. 193,419,809. 142,981,045.

e Other 23,788 470. 424,916. 23,363,554.

Total. Add lines la-le. (Column (d) should equal Form 990, Part X column (B), line 10(c)) ► 434,019,102.

Schedule D (Form 990) 2008

83205212-23-08


Sbhedule D(Fomm990)2008 Sanford Health Group Return 46-0462161

Part VII Investments - Other Securities. See Form 990, Part X, line 12.

(a) Description of security or category (b) Book value (c) Method of valuation:(including name of security) Cost or end-of-year market value

Financial derivatives and other financial products

Closely-held equity interests

Other

3

Total. Col b should equal Form 990, Part X, col ( B ) line 12. ) ►Part VIII Investments - Program Related . See Form 990, Part X, line 13.

I I( b) Book value (c) Method of valuation:

(a) Description of investment typeCost or end-of-year market value

Form 990, Part X, col (B) line 13.)► 1

sets . See Form 990, Part X, line 15.

Total . (Column should equal Form 990, Part X, col B line 15.) ►Part X Other Liabilities . See Form 990, Part X, line 25.

Federal income taxes

Vested deferred compensation obligation 3 , 796 ,157.

Long - term lease obligation 1, 379 ,875.

Defined benefit pension liability 29, 246 ,858.

Other non -current liabilities 300 ,000.

Minority Interest 1, 118 ,642.

Total. (Column (b) should equal Form 990, Part )( col (B)1ine 25 ) 35,841 ,532.1

In Part XIV, provide the text of the footnote to the organization 's financial statements that reports the organization 's liability for uncertain tax positions

under FIN 48.83205312-23-08 Schedule 0 (Form 990) 2008


Schedule D (Form 990) 2008 Sanford Health Group Return

Part XI Reconciliation of Change in Net Assets from Form 99

1 Total revenue (Form 990, Part VIII, column (A), line 12)2 Total expenses (Form 990, Part IX, column (A), line 25)

3 Excess or (deficit) for the year. Subtract line 2 from line 1

4 Net unrealized gains (losses) on investments

5 Donated services and use of facilities

6 Investment expenses _

7 Prior period adjustments

8 Other (Descnbe in Part XIV)

9 Total adjustments (net). Add lines 4-8

10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9

1 Total revenue, gains, and other support per audited financial statements 1

2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:

a Net unrealized gains on investments 2a

b Donated services and use of facilities 2b

c Recovenes of pnor year grants _ 2c

d Other (Describe in Part XIV) 2d

e Add lines 2a through 2d 2e

3 Subtract line 2e from line 1 3

4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:

a Investment expenses not included on Form 990, Part Vill, line 7b 4a

b Other (Descnbe in Part XIV) 4b

c Add lines 4a and 4b 4c

5 Total revenue. Add lines 3 and 4c. (Th is should equal Form 990, Part I, line 12.) 5

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return1 Total expenses and losses per audited financial statements 1

2 Amounts included on line 1 but not on Form 990, Part IX, line 25:

a Donated services and use of facilities _ 2a

b Prior year adjustments 2b

c Losses reported on Form 990, Part IX, line 25 2c

d Other (Describe in Part XIV) 2d

e Add lines 2a through 2d 2e

3 Subtract line 2e from line 1 _ 3

4 Amounts included on Form 990, Part IX, line 25, but not on line 1:

a Investment expenses not included on Form 990, Part VIII, fine 7b 4a

b Other (Describe in Part XIV) 4b

c Add lines 4a and 4b 4c

5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) 5

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1 a and 4; Part IV, lines 1 b and 2b; Part V, line 4; Part

X; Part XI, line 8; Part XII, lines 2d and 4b; and Part All, lines 2d and 4b.

Part V line 4: Sanford Health Foundation holds endowment funds on

behalf of the filing organization to be used for assistance in its

activities and for providing health care, medical, or educational

services.

Part X: Sanford adopted the provisions of FASB Interpretati on

(FIN) No. 48, Accounting for Uncertainty in Income Taxes, an

interpretation of FASB Statement No. 109 on May 1, 2007. As a re su lt of

Schedule D (Form 990) 200883205412-23-08

46-0462161 Page 4

nents

1

2

3

rn


Sbhedule D Form 990 2008 Sanford Health Group Return 46-0462161 Pa e 5

Part Supplemental Information (continued)

the implementation of FIN No. 48, Sanford was not required to recognize a

liability for unrecognized tax benefits . There was no unrecognized tax

benefits for the year ended June 30, 2009.

Schedule D (Form 990) 200883205512-23-08


SCHEDULE H(Form 990)

HospitalsDepartment of the Treasury To be completed by organizations that answer "Yes" to Form 990, Part IV, line 20.Internal Revenue Service

Illi- Attach to Form 990.

Sanford Health Group Return

for

46-0462161

Open to PublicInspection

1 a Does the organization have a chanty care policy? If "No," skip to question 6a

b If "Yes,' is it a written policy?

2 If the organization has multiple hospitals , Indicate which of the following best describes application of the charity care policy to the various hospitals

0 Applied uniformly to all hospitals Q Applied uniformly to most hospitals

Generally tailored to individual hospitals

3 Answer the following based on the charity care eligibility criteria that applies to the largest number of the organization's patients.

a Does the organization use Federal Poverty Guidelines (FPG) to determine eligibility for providing free care to low income

individuals? If 'Yes,' indicate which of the following is the family income limit for eligibility for free care:

Q 100% Q 150% = 200% 0 Other %

b Does the organization use FPG to determine eligibility for providing discounted care to low income individuals?

If 'Yes,' indicate which of the following is the family income limit for eligibility for discounted care:

0 200% = 250% Q 300% = 350% = 400% = Other %

c If the organization does not use FPG to determine eligibility, describe in Part VI the income based criteria for determiningeligibility for free or discounted care. Include in the description whether the organization uses an asset test or otherthreshold, regardless of income, to determine eligibility for free or discounted care.

3a

3b

4 Does the organization's policy provide free or discounted care to the 'medically indigent'? 4

5a Does the organization budget amounts for free or discounted care provided under its chanty care policy? 5a

b If "Yes," did the organization's chanty care expenses exceed the budgeted amount? 5b

c If 'Yes' to line 5b, as a result of budget considerations, was the organization unable to provide free or discounted

care to a patient who was eligible for free or discounted care? 5c

6a Does the organization prepare an annual community benefit report? _ 6a

b If 'Yes,' does the organization make it available to the public? 6b

Complete the following table using the worksheets provided in the Schedule H instructions Do not submit these worksheets with the Schedule H

7 Chanty Care and Certain Other Community Ranefds at Cost

Charity Care and Means- (a ) Number of Persons C Total Direct a Net Percent ofactivities or served community offsetting community total expense

Tested Government Programs programs (optional ) (optional ) benefit expense revenue benefit expense

a Charity care at cost (from

Worksheets 1 and 2)

b Unreimbursed Medicaid (from

Worksheet 3, column a)

c Unreimbursed costs - other means-

tested government programs (from

Worksheet 3, column b)

d Total Chanty Care and Means-

Tested Government Prog rams

Other Benefits

e Community health

improvement services and

community benefit operations

(from Worksheet 4)

f Health professions education

(from Worksheet 5)

g Subsidized health services

(from Worksheet 6)

h Research (from Worksheet 7)

1 Cash and in-kind

contributions to community

groups (from Worksheet 8)

j Total Other Benefits

k Total Ine 7d and 7

832091 12-24-08 LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 980.

2514300514 140705 HEALTHGROUP 2008.05060 Sanford Health Group

OMB No 1545-0047

Schedule M (Form 990) Z70S

Return HEALTHG2

Schedule H Form 990) 2008 Sanford Health Group Return 46-0462161 Page 3

Part Facility Information (Required for 2008)

Name and address

EO-

L

C

Cs21

°a

U

N

E

d

C7

tl

CL0

L

!^

0

O

EO-

t

U

F^

NOLU)

UU

U

O

U

d

¢

3

0L

N

w

-

O

w

Other

(Descnbe)

Sanford USD Medical Center

1305 W 18th Street

Sioux Falls, SD 57117 X X X X X

Sanford Hospital Rock Rapids

801 S. Greene Street

Rock Rapids, IA 51246 X X X X

Sanford Sheldon Medical Center

118 N. 7th Avenue

Sheldon, IA 51201 X X x x

Sanford Canby Medical Center

112 St. Olaf Avenue S.

Canby, MN 56220 X x x X

Sanford Hospital Jackson

1430 N. Highway

Jackson, MN 56143 X X X X

Sanford Hospital Luverne

1600 N. Kniss Avenue

Luverne, MN 56156 X X X X

Sanford Tracy Medical Center

251 Fifth Street E.

Tracy, MN 56175 X X X X

Sanford Hospital Westbrook

920 Bell Avenue

Westbrook, MN 56183 X X x x

Sanford Regional Hospital Worthington

1018 6th Avenue

Worthington, MN 56187 X X X X

Sanford Hospital Canton-Inwood

440 N. Hiawatha Drive

Canton, SD 57013 X X X X

Sanford Mid-Dakota Medical Center

300 S. Byron Blvd

Chamberlain, SD 57325 X X X X

Sanford Hospital Deuel County

701 3rd Avenue

Clear Lake , SD 57226 X X X X

Sanford Vermillion Medical Center

20 S. Plum

Vermillion, SD 57069 x x X X

Sanford Hospital Webster

1401 W. let Street

Webster, SD 57274 X X X X

832093 12-24-08 Schedule H (Form 990) 2008


SCHEDULE I OMB No 1545-0047

(Form 990) Grants and Other Assistance to Organizations,

Governments , and Individuals in the U.S. 2DO8

Department of the Treasury ► Complete if the organization answered "Yes," on Form 990, Part IV, lines 21 or 22. Open to Public

Internal Revenue Service 110- Attach to Form 990. Inspection



on

Does the organization maintain records to substantiate the amount of the grants or assistance , the grantees' eligibility for the grants or assistance , and the selection

cntena used to award the grants or assistance? Q Yes x0 No

2 Describe in Part IV the organization's procedures for monitorin g the use of grant funds in the United States.

Part II Grants and Other Assistance to Governments and Organizations in the United States . Complete if the organization answered 'Yes" on Form 990, Part IV, line 21, for any

recinient that received more than $5.000 Check this box if no one recipient received more than $5,000. Use Part IV and Schedule I-1 (Form 990) if additional space is needed ► Q

1 (a) Name and address of organizationor government

(b) EIN (c) IRC sectionif applicable

(d) Amount ofcash grant

(e) Amount ofnon-cashassistance

(f) Method ofvaluation (book,FMV, appraisal,

(g) Description ofnon-cash assistance

(h) Purpose of grantor assistance

othe

USD School of Medicine

1400 W. 22nd Street

Sioux Falls, SD 57105-1581 46-0418678 01(c)3 10 , 000. 0. eneral support

Our Saviors Lutheran

909 W 33rd Street

Sioux Falls, SD 57105 01(c)3 50 , 000. 0. eneral support

River City Racin

PO Box 581 Community Economic

Chamberlain, SD 57325 32-0200170 7 , 550. 0. Development

Sanford Health Foundation

1305 W 18th Street

Sioux Falls, SD 57105 36-3297853 01(c)3 14,810. 0. eneral support

2 Enter total number of section 501 (c)(3) and government organizations 3.

3 Enter total number of other organizations ► 1

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule I (Form 990) 2008

832101 12-18-08 27

Schedule) Form 990 2008 Sanford Health Group Return 46-0462161 Page 2

IPart I Grants and Other Assistance to Individuals in the United States . Complete if the organization answered "Yes" on Form 990, Part IV, line 22.

Use Schedule I.1 (Form 990) if additional space is needed.

(a) Type of grant or assistance (b) Number ofrecipients

(c) Amount ofcash grant

(d) Amount of non-cash assistance

(e) Method of valuation(book, FMV, appraisal, other)

(f) Description of non-cash assistance

I Part IV I Supplemental Information . Complete this part to provide the information required in Part I, line 2, and any other additional information.

Schedule I, Part I, Line 2: All grants given are donations to individual

organizations. The funds are to be used for the general support of the

organization receiving the funds.

632102 12-18-08 28 Schedule I (Form 990) 2008

SCHEDULE J-2OMB No 1545-0047

(Form 990) Continuation Sheet for Form 990 2008Open to ruuliv.

Department of the Treasury Jim- Attach to Form 990 to list additional information for Form 990, Part VII, Section A, line Ia.Internal Revenue Service Inspection

Name of the Organization Employer Identification number

Sanford Health Group Return 46-0462 161

Part I Continuation of Officers, Directors, Trustees, Key Employees, and Highest Compensated mployees(A) (B) (C) (D) (E) (F)

Name and Title Average Position Reportable Reportable Estimatedhours (check all that apply) compensation compensation amount ofper from from related otherweek the organizations compensation

8 E organization (W-2/1099-MISC) from the(W-2/1099-MISC) organization

of and relatedb A a organizations

- -

O

°

Y S

E

,P

Lyda Mary Hendricks


Michael C. Wilde, MD

Member-SC 60.00 X 0. 0. 0.

Michael D. Keppen, MD

Vice Chairman-SC 60.00 X 0. 0. 0.

Michael L. Olson, MD

Member-SC 60.00 X 0. 0. 0.

Monty Walz

Sec/Treas-SMC 0.50 X 0. 0. 0.

Paula M. Adam-Burchill,

Member-SC 60.00 X 0. 0. 0.

Randall J. Jacobama


Richard D. Hardie, MD

Chairman-SC 60.00 X 0. 0. 0.

Richard J. Barth, MD

Member-SC 60.00 X 0. 0. 0.

Robert E. Van Demark, Jr

Member-SC 60.00 X 0. 0. 0.

Roger Lind


Scott D. Henry, MD

Member-SC 60.00 X 0. 0. 0.

Scott Pham, MD

Member-SC 60.00 X 0. 0. 0.

Sharon Birk


Theresa M. Stamato, MD

Member-SC 60.00 X 0. 0. 0.

Thomas M. Braithwaite, M

Member-SC 60.00 X 0. 0. 0.

Tom Christopherson, MD


Steve Goetsch

Vice President-SHH & SC 60.00 x I x 0. 0. 0.

David Danielson

Pres-SHH & CAO-SC 60.00 X 0. 0. 0.

Bruce Viessman

VP Finance-SHN 60,00 I X 0. 0. 0.

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule J-2 (Form 990) 200d

832201 12-18-08


SCHEDULE J-2 OMB No 1545-0047

(Form 990) Continuation Sheet for Form 990 2flfR

Department of the TreasuryInternal Revenue Service

100- Attach to Form 990 to list additional information for Form 990, Part VII, Section A, line la.

Name of the Organization Employer Identification number


Part I Continuation of Officers, Directors, Trustees Key Employees, and Highest Compensated mployees(A)

Name and Title

(B)

Averagehours

(C)

Position(check all that apply)

(D )

Reportablecompensation

(E)

Reportablecompensation

(F)

Estimatedamount of

perweek

8

T!

s

b

od

E

Mofofo

^ s

fromthe

organization(W-2/1099-MISC)

from relatedorganizations

(W-2/1099-MISC)

othercompensation

from theorganizationand related

organizations

Charles P. O'Brien, MD

SMC President-SMC 60.00 X 0. 0. 0.

Daniel W. Blue, MD

President-SC 60.00 X 0. 0. 0.

Ed Weiland

President-SHN 60.00 X 0. 0. 0.

Jeff Sandene

CFO-SMC 60.00 X 0. 0. 0.

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule J -2 (Form 990) 2008

832201 12-18-08


SCHEDULE K Supplemental Information on Tax-Exempt Bonds( Form 990) Ill- Attach to Form 990 To be completed by organizations that answered "Yes" to Form 990, Part IV, line 24a.Department of the Treasury Provide descriptions, explanations, and any additional information on Schedule 0 (Form 990).Internal Revenue Service

OMB No 1545-0047

2008



Part I I Bond Issues (Required for 2008) See Schedule 0 for Column (f) Continuations

(a) Issuer name (b) Issuer EIN (c) CUSIP # (d) Date issued (e) Issue price (f) Description of purpose (g) Defeased (h) On behalfof issuer

Yes No Yes No

South Dakota Health and Educational

A Facilities Authority 6-0315509 3755VHY3 09/14/04 52 , 073 , 989.

P Surgery Tower - To squire

nd renovate certain hospit X X


B Facilities Authority 6-0315509 3755VHZO 09/14/04 18,000 , 000.

eplace Luverne acute care

ospital and clinic and new X X


C Facilities Authority 6-0315509 83755VME1 04/19/07 75,002 , 140.

hildrens hospital and

linic, expand cancer center X X

D

E

Part II Proceeds (Optional for 2008)

A B C D E

1 Total proceeds of issue

2 Gross proceeds in reserve funds

3 Proceeds in refunding or defeasance escrows

4 Other unspent proceeds

5 Issuance costs from proceeds

6 Working capital expenditures from proceeds

7 Capital expenditures from proceeds

8 Year of substantial completion

Yes No Yes No Yes No Yes No Yes No

9 Were the bonds issued as part of a current refunding issue?

10 Were the bonds issued as part of an advance refunding

issue?

11 Has the final allocation of proceeds been made?

12 Does the organization maintain adequate books and records

to support the final allocation of proceeds?

Part III Private Business Use (Optional for 2008)

A B C D E

1 Was the organization a partner in a partnership , or a member Yes No Yes No Yes No Yes No Yes No

of an LLC, which owned property financed by tax-exempt

bonds?

2 Are there any lease arrangements with respect to the financed

p roperty which may result in private business use?

12-19-oe LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Fad 990. Schedule K (Form 990) 2008

SCHEDULE L Transactions with Interested PersonsOMB No 1545-0047

(Form 990 or 990-EZ) ' Attach to Form 990 or Form 990-EZTo be completed by organizations that answered 20

Department of the Treasury"Yes" on Form 990, Part IV, lines 25a , 25b, 26, 27, 28a , 28b, or 28c, Open To Public

Internal Revenue Service or Form 990-EZ, Part V, lines 38a or 40b. Inspection



a Excess Benefi t Transactions (section 501(c)(3) and section 501(c)(4) organizations only).

To be completed by organizations that answered 'Yes' on Form 990, Part IV, line 25a or 25b, or Form 990-FZ, Part V, line 40b.

1 (c) Corrected?(a) Name of disqualified person (b) Description of transaction

Yes No

2 Enter the amount of tax imposed on the organization managers or disqualified persons during the year under

section 4958 $

3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization ► $

art 11 Loans to- and/or From Interested Persons.

To be completed by oraanlzatlons that answered 'Yes' on Form 990. Part IV. line 26. or Form 990-EZ. Part V. line 38a

(a) Name of interestedperson and purpose

(b) Loan to or fromthe organization?

(c) Original principalamount

(d) Balance due (e) Indefault?

Approvedby board orcommittee?

(g) Writtenagreement?

To From Yes No Yes No Yes NoJerry Freeman - P X 450,000. 138 860. X X X

Patrick Kelly - P X 161,000. 104,391. X X X

Total 11111. $ 243,251.

ran iii uranis or fass,siance oeneining interesieu rersons.

To be completed by oroanizations that answered 'Yes' on Form 990. Part IV. line 27.

(a) Name of interested person (b) Relationship between interested person andthe organization

(c) Amount of grant or typeof assistance

Part Business Transactions Inv i na Interested Persons.

To be completed by oroanlzations that answered 'Yes' on Form 990. Part IV. lines 28a_ 28b_ or 28c

(a) Name of interested person (b) Relationship between interestedperson and the organization

(c) Amount oftransaction

(d) Description oftransaction

(e) Sharing oforgaes?'s

revenunuees?

Yes No

Terri A. Peterson-Henry Scott Henry - famil 25,262. ompensatio X

Carol Creasman indi Slack - famil 13,885, ompensatio X

Joshua Weiland Ed Weiland - family 11,716, ompensatio X

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule L (Form 990 or 990-EZ) 2008

See Schedule 0 for Schedule L Continuations

832131 12-17-08


SCHEDULE 0 i FS l Il 0OMB No 1545-0047

(Form 990)

Department of the TreasuryInternal Revenue Service

upp ementa nformat on to orm 99NO- Attach to Form 990. To be completed by organizations to provideadditional information for responses to specific questions for the

Form 990 or to provide any additional information.

2008

nspectionName of the organization


Employer identification number

46-0462161

Form 990, Part III, Line 1, Description of Organization mission:

every member of the Sanford Health family through extraordinary

teamwork, compassionate relationships and professional excell enc e.

Form 990, Part III, Line 4a, Program Service Accomplishments

40 pediatric subspecialty trained physicians, 16 general pediatricians

and more than 150 family medicine physicians work side by side with

over 350 specially trained pediatric staff to provide the most

comprehensive healthcare to children and their families in our region.

Sanford Children's Hospital is the first children's hospital in the

United States to install a new LightSpeed VCT XTe console low do s e CT

scanner with reconstruction techniques that can lower radiation dosage

up to 40% which is a significant reduction in radiation exposure for

our pediatric population.

A new state of the art Heart Hospital began construction in 20 0 9 with

an opening planned for early 2012. This new 205,000-square foot

facility will include 58 inpatient beds, cardiovascular operating

rooms, cath labs, clinic and outpatient services. The goal of this new

building is to make care more easily accessible to our patients all in

one location as well as provide all other aspects of care a tertiary

hospital provides by being directly connected to the Medical Center.

Heart & Vascular screenings are offered to our consumers at a very

affordable cost with many patients coming back for necessary heart care

services. An additional component to our heart care program is a

comprehensive, statewide initiative called Take Heart South Dakota

which is a new program designed to increase survival rates of sudden

LHA For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990. Schedule 0 (Form 990) 200883221112-18-08


SCHEDULE 0 Supplemental Information to Form 990OMB No 1545-0047

(Form 990) 00- Attach to Form 990. To be completed by organizations to provide 2008additional information for responses to specific questions for the Open to

InternalDepartment

Revenuethe

ServiceTreasury Form 990 or to provide any additional information. Inspection



cardiac arrest. Sanford Medica l Cent e r also achieved Chest Pain

accreditation in 2009.

Sanford's stroke certified neurology unit offers high quality neurology

services which include a Rapid Response team and a growing Stroke

Network. Through a grant, Sanford's neurology team was awarded to

participate in the Adam Williams initiative designed to improve the

care and outcomes for patients with traumatic brain injury, and

recently developed a Stroke Share Point which is a public site for

educational use and a resource for clinicians that work with Stroke

Protocols.

Orthopedic & Sports medicine at Sanford takes a comprehen sive approach

to orthopedic care which includes multiple subspecialties and

synergistic programs such as the Center for Joint Success, Wellness

Center. POWER Center. National Institute for Athletic Health &

Performance. Physical Medicine & Rehab. Spine Center and dedicated

Orthopedic operating rooms designed to handle orthopedic outpatients in

a customer friendly, efficient manner. Sanford's Orthopedic & Sports

Medicine program serves the sports medicine needs of over 17 athletic

teams throughout the state and includes the NBA D-League Skyforce

basketball team.

Sanford's Cancer Center was chosen as one of only 16 sites that are

participating in a three year, nationwide pilot project for the

National Cancer Institute (NCI) that will enhance cancer care to

patients throughout the region. One of the main objectives of the NCI

Community Cancer Centers Program (NCCCP) is to reduce cancer c are

disparities among underserved populations through education

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule 0 (Form 990) 200883221112-18-08


SCHEDULE 0 Supplemental Information to Form 990(Form 990) Attach to Form 990. To be completed by organizations to provide

additional information for responses to specific questions for the

InternalDepartment

Revenuethe

ServiceTreasury Form 990 or to provide any additional information.

No 1545-0047

Name of the organization Employer Identification number


prevention, screening, treatment and patient-family support programs.

Sanford 's Cancer Center embraces a "Journey of Healing " philosophy

through art. Since it began last fall, more than 650 patients have

been touched by art experiences such as poetry, journaling, sculpture

and painting. Another component to the Journey of Healing is the

artist-in-residence program which was created to complement our

philosophy of caring for patients throughout their cancer journey.

Sanford's Cancer Center also has a Cancer Center Community Advi sory

committee, comprised of cancer survivors, caregivers and support

persons, who provide input and direction on programming for treatment,

medical services and auxiliary programming that will benefi t patients,

family members and the community.

SMC is an ACS Verified Level II Trauma Center. The Emergency Department

is the largest and most comprehensive emergency facility in the r eg ion.

Our Intensive Air program, which includes 1 helicopter and 2 fixed wing

airplanes, has been operating since 1977. Intensive Ai r is a CAMTS

(Commission on Accreditation of Air Medical Services) accredited flight

program and was the first program to have this recognition i n the

region. Intensive Air consists of four specialized transpor t teams to

include Adult, Pediatric, Neonatal and Maternal. During this past

year, over 37,000 patients were seen in Sanford USD Medical Center s'

Trauma 5 Center regardless of age, nature of illness/injury or ability

to pay.

Sanford Women's offers 21 state of the art LDR rooms where moms can

BHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990. Schedule 0 (Form 990) 200883221112-18-08


SCHEDULE 0 Supplemental Information to Form 990(Form 990) jli^ Attach to Form 990. To be completed by organizations to provide


Internal

Department

Revenue

theServiceTreasury Form 990 or to

provide an

yadditional information.

OMB No 1545-0047

2008

Open to ruInspection

Name of the organization



46-0462161

labor, deliver and recover all in one room. Upon recovery mom and baby

are brought to the Birthplace which is a highly secured, family

oriented, designated facility with 27 rooms for mom, baby and family to

recover and bond in a luxurious, homey atmosphere which includes a

Bistro and lounging areas with ample space for family members to st ay

overnight. Many educational classes are offered throughout a mom's

pregnancy and beyond the birth experience well into mature womanhood.

Sanford Women's Health Plaza is a unique destination designed to

provide all women a variety of health options under one roof. At the

Plaza, women can receive clinical services, health screenings, feeling

good fitness classes as well as information and motivation f or making

healthy lifestyle choices.

Sanford USD Medical Center is accredited by The Joint Commission and

has achieved Magnet Nursing Status from the American Nurse s

Credentialing Center (ANCC).

Form 990 , Part III, Line 4b, Program Service Accomplishmen ts

fetal medicine subspecialty care. In this service line another

collaborative pinnacle service is in development, a regional Fetal Care

Center which includes diagnostic services and fetal surgery. In the

Heart and Vascular area, the physician growth to 12 interventional,

invasive, general cardiologists and vascular surgeons provides the base

of a strong cardiovascular outreach services in the region, a strong

clinical research program element and prevention focus with screening

programs all providing the foundation for a new Heart Hospita l be ing

LHA For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.83221112-18-08


Schedule 0 (Form 990) 2008

eturn HEALTHG2

SCHEDULE 0 FOMB No 1545-0047

(Form 990)

InternalDepartment

Revenuof the

e

eServiceTreasury

orm 990Supplemental Information toNo- Attach to Form 990. To be completed by organizations to provideadditional information for responses to specific questions for the

Form 990 or toprovide an

yadditional information .

2008Open to

PuM11-7Inspection




46-0462161

constructed. Bariatric, trauma and general surgery clinic a l se rvic e s

by the 9 surgeons provide surgical care for the Sanford Clinic

patients. The surgery practice provides the surgica l onc ology care

including the strong breast cancer progr am, GI cancer program, and lung

cancer program. General pediatric and subspecialty pediat r ic

physicians support the Children's Hospital and regional outreach

services and national pediatric care. This year's recruitment includes

Pediatric Hematology/Oncology, Pediatric Cardiology, and Ped iatric G I.

in the neuroscience and orthopedics clinical services, growth in

physicians, and program development continues in sports medicine,

general and subspecialty orthopedics and neuroscience specific

diseases , examples include MS and Headache care. Subspecialty medi cine

practices have also had growth in physicians which provide the

consultative and procedure services to support primary care both in the

ambulatory and inpatient clinical services at Sanford.

Form 990, Part III, Line 4c, Program Service Accomplishments

been a priority over the past year. In addition, Sanford Health Network

has been working towards adding a new hospital and a replacement

nursing home facility in two communities in South Dakota.

Form 990, Part III, Line 4d, other Program Services:

Sanford Home Health (SHH) provides skilled nursing care through various

programs. The Hospice program promotes and enhances the comfort and

dignity of the terminally ill person, the family, and the primary

caregivers. The Home Nursing Care program provides skilled nur si ng



SCHEDULE O Supplemental Information to Form 990(Form 990) Attach to Form 990. To be completed by organizations to provide


InternalDepartment

Reven uethe

ServiceTreasury Form 990 or to

provide an

yadditional information.

OMB No 1545.0047

2008

Inspection




46-0462161

care, medical aid, and guidance to high risk, handicapped, and

homebound individuals. The Companion Aide program provide s care to

elderly people in their home on a private pay basis.

Expenses $ 1044930. including grants of $ 0. Revenue $ 1380078.

Form 990, Part VI, Section A, line 2: David Danielson and Jerel T i e szen

have a business relationship.

Form 990, Part VI, Section A, line 6: Sanford Health is the sol e

corporate member of Sanford Medical Center, Sanford Clinic, Sanford Home

Health and Sanford Health Network. Sanford Health's members are i t s

Trustees. The Trustees of Sanford Health approve the actions appr oved by

the Boards of Directors of Sanford Medical Center, Sanford Health Network

and Sanford Home Health, and the Board of Governors of Sanford Cl i nic.

Form 990, Part VI, Section A, line 7a: The Sanford Health Board o f

Trustees appoints the board members for the Board of Director s o f Sanf ord

Medical Center, Sanford Health Network and Sanford Home Health. New

members for the Board of Governors of Sanford Clinic shall be approved by

the Board of Trustees of Sanford Health.

Form 990, Part VI, Section A, line 7b: The Trustees of Sanford Health

approve the actions approved by the Boards of Directors of Sanford Medical

Center, Sanford Health Network and Sanford Home Health, and the Board of

Governors of Sanford Clinic.

LHA For Privacy Act and Paperwork Reduction Act Notice , see the Instructions for Form 990.83221112-18-08

38



eturn HEALTHG2

SCHEDULE 0 l l I f tS i F 9OMB No 1545-0047

(Form 990)

InternalDepartment

Reven ue

theServiceTreasury

n onupp ementa ormat o orm 9 010- Attach to Form 990. To be completed by organizations to provideadditional information for responses to specific questions for the

Form 990 or to provide any additional information.

20011Open to ruInspection




46-0462161

Form 990, Part VI, Section A, line 10; The finance department prepares the

Form 990. The CFO and an external accounting firm revi ews the return

before filing. The return is filed, and a complete copy o f the 99 0 is

provided to the President/CEO and a copy made available to the current

board members of the parent company. Then highlights of the return,

including key disclosures, are presented at a meeting of the board of

trustees.

Form 990, Part VI, Section B, Line 12c: The annual COI disclosure process

is managed by the vice President of Corporate Responsibili ty, who is

responsible for assuring that all completed forms are re turned in a time ly

and complete manner. Conflict of Interest questionnaires are s ent t o

System Trustees , Boards of Directors, VP level and above employees, as we ll

as selected other management employees based on their job ro le. The

disclosures are summarized for review by the executive committee of the

Board o f Trust ees. Board review is an import ant step in the pr o c ess f or

the following reasons : 1) The Board acquires an awareness of financial

relationships of board members and key management employees and can invoke

the recusal process on a case -by-case basis when potential conflicts are

implicated in Board decisions and deliberations, and, 2) The Board has the

opportunity to seek additional information and clarification about the

disclosure to determine whether and how to manage potential conflicts of

interest.

Form 990, Part VI, Section B, Line 15: The Sanford Health Board of

Trustees directly engages a nationally recognized independent compensation



SCHEDULE O Supplemental Information to Form 990(Form 990) 00- Attach to Form 990. To be completed by organizations to provide

additional information for responses to specific questions for theDepartment of the TreasuryInternal Revenue Service

Form 990 or to provide any additional information .

OMB No 1545-0047

2008Open to FluInspection




46-0462161

consulting firm to annually review the total c ompensation arrangements of

the officers and operating unit executives of the organiza t i on, including

the CEO, and to report the findings and recommendations to the Sanford

Health Board of Trustees for deliberation and action. The deliberations

and actions are recorded in the minutes of the Sanford Health Board of

Trustees. The most recent study was completed in 2009. Additionally,

Sanford Health periodically engages an independent compensation consultant

to review and issue a report regarding the reasonableness of the total

compensation arrangements of all physicians employed by the organization.

The most recent study of physician tot a l c ompensation arrangements was

completed in 2009.

Form 990, Part VI, Section C, Line 19: Although we do not maint ain a

website where the public can access these documents, we would r espond to

any requests or inquiries from the public for these documents.

Form 990, P art VII:

Board members of Sanford Health provide services to Sanford Health

subsidiaries. Hours reported for each individual reflect the time spent on

work related to either the filing organization or related organization.

The Form 990 filed on behalf of Sanford Health Group Return reports

activities of the organization for the short period beginning May 1, 2009

and ending June 30, 2009. Compensation reported in Form 990, Part VII and

Schedule J, Compensation Information, is required to be reported on a

calendar year basis. Accordingly, since the Form 990 for the short period

LHA For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990.83221112-18-08



eturn HEALTHG2

SCHEDULE 0 Supplemental Information to Form 990(Form 990) ► Attach to Form 990. To be completed by organizations to provide

additional information for responses to specific questions for theDepartment of the Treasury Form 990 or to rovide an additional information.Internal Revenue Service p yI

OMB No 1545-0047

2008

Name of the organization I Employer identification number


May 1, 2009 through June 30, 2009 did not include a calendar year end, no

compensation amounts are reported on this Form 990 , Part VII and Schedule

J, Compensation Information. Calendar year 2008 compensation information

was reported in full on the Form 990 for Sanford Health Group Return for

the fiscal year ended April 30, 2009. Likewise, calendar year 2009

compensation information will be reported in full for Sanford Health Group

Return for the fiscal year ended June 30, 2010.

Form 990, Part XI, Line 2b

Audited Financial Statements

This box is checked "No" because related organizations of Sanford

Health are included in a consolidated audit by an independent

accountant. The independent audit is not performed on an entity by

entity basis.

Schedule K, Part i, Bond Issues:

(a) Issuer Name: South Dakota Health and Educational Facilities Authority

(f) Description of Purpose:

IP Surgery Tower - To squire and renovate certain hospital f ac iliti es

(a) Issuer Name: South Dakota Health and Educational Facilities Authority

(f) Description of Purpose:

Replace Luverne acute care hospital and clinic and new IP surgery center

(a) Issuer Name : South Dakota Health and Educational Facilities Authority



SCHEDULE 0 Supplemental Information to Form 990(Form 990) ON- Attach to Form 990. To be completed by organizations to provide

additional Information for responses to specific questions for theDepartment the Treasury Form 990 or to provide any additional information.Internal Reve n ue serv icece

(f) Description of Purpos e:

Childrens hospital and clinic, expand cancer center, power plant, renovatio

Schedule L, Part II, Loans To and From Inter es ted Per son s:

(a) Name of Person: Jerry Freeman

(a) Purpose of Loan: Physician Recruitment/Retention Loan

(a) Name of Person: Patrick Kelly

(a) Purpose of Loan: Physician Recruitment/Retention Loan

Sch L Part IV, Business Transactions I nvolving Int erested Pe r sons:

(a) Name of Person: Terri A. Peterson-Henry

(b) Relationship Between Interested Person and Organizat ion:

Scott Henry - family relationship

(d) Description of Transaction: Compensation

(a) Name of Person: Carol Cressman

(b) Relationship Between Interested Person and Organization:

Cindi Slack - family relationship


(a) Name of Person: Joshua Weiland

(b) Relationship Between Interested Person and Organization:

Ed Weiland - family relationship



No

0Name of the organization Employer identification number




(Form 990) 10- Attach to Form 990. To be completed by organizations to provide 2008additional Information for responses to specific questions for the Open to PublicDepartment of the Treasury

Internal Revenue Service Form 990 or to provide any additional information. Inspection



Form 990 Elections

Elections

Sanford Health Group Return elects pursuant to Regulation Section

1.6033-2(d)(5) to report the information required by Regul ation Section

1.6033-2(a)(ii)(f) as described below on a consolidated basis.

Regulation Section 1.6033-2(a)(ii)(f) - The total of contributions,

gifts, and grants and the names and addresses of all persons who

contributed, bequeathed, or devised $5,000 or more during the taxable

year. This information is reported on the Form 990, Part VI II, Line 1.

Form 990, Page 1, Line H(a) - Listing of Subordinate Organiz ati on:

Names Addresses and EINs

Sanford Medical Center

1305 West 18th Street, PO Box 5039

Sioux Falls, SD 57117-5039

EIN: 46 -0227855

Sanford Home Health

2710 West 12th Street

Sioux Falls, SD 57104

EIN: 46-0282134

Sanford Health Network





(Form 990) Pop- Attach to Form 990. To be completed by organizations to provide 2008additional information for responses to specific questions for the Open to ru

Department of the TreasuryInternal Revenue Service Form 990 or to provide any additional information. Inspection



Sioux Falls, SD 57117-5 0 39

EIN: 46 -0388596

Sanford Clinic


Sioux Falls, SD 57117-5039

EIN: 46-0447693



SCHEDULE R(Form 990)Department of the Treasuryinternal Revenue Service




46-0462161

Part I Identification of Disregarded Entities

(A)

Name, address, and EINof disregarded entity

(B)

Primary activity

(C)

Legal domicile (state or

foreign country)

(D)

Total income

(E)

End-of-year assets

(F)

Direct controllingentity

Sanford Consumer Services, LLC - 20-8736919

1305 W 18th Street

Sioux Falls, SD 57117 Medical Spa South Dakota 103 629. 352 272, anford Clinic

Southwest MN Radiation Center, LLC -

46-0447693, 1018 6th Ave, Worthington, MN

56187 Radiation South Dakota 440,895. 1 , 071,640. anford Health Network

Sanford Medical Center Auxiliary -

46-0227855 , 1305 W 18th Street, Sioux Falls,

SD 57117 Support Hospital South Dakota -768. 133 , 433, anford Medical Center

I-I

Part II Identification of Related Tax-Exempt Organizations

(A)

Name , address , and EINof related organization

(B)

Primary activity

(C)

Legal domicile (state or

foreign country)

(D)

Exempt Codesection

(E)

Public chantystatus (if section

501 (c)(3))

(F)


Sanford Research/ USD - 46 - 0450378

1100 E 21st Street

Sioux Falls , SD 57105 Research South Dakota 01(c)(3) L ine 4 Sanford Health

Sanford Health - 31-1527032

1305 West 18th Street Line 11 Type

Sioux Falls , SD 57117 Supporting Organization South Dakota 01(c)(3 ) ii Sanford Health

Sanford Health Foundation - 36-3297853


Sioux Falls , SD 57117 S upporting Organization South Dakota 01(c)(3 ) L ine 11 Type I S anford Health

Sanford World Clinics - 26-2707628


Sioux Falls , SD 57117 ealthcare South Dakota 01(c)(3 ) L ine 3 S anford Health

Related Organizations and Unrelated Partnerships

Attach to Form 990. To be completed by organizations that answered "Yes" to Form 990, Part IV, lines 33,34,35,36, or 37.

0. See separate instructions.

OMB No 1545-0047

LHA For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 990 . Schedule R (Form 990) 2008

83216112-23-08 45

Schedule R (Form 990) 2008 Sanford Health Group Return 46-0462161 Page 2

Part III Identification of Related Organizations Taxable as a Partnership

(A)

Name, address, and EINof related organization

(B)Primary activity

(C)Legal domicile

(state orforeign

(D)


(E)Predominant income(related, investment,

unrelated)

(F)

Share of totalincome

(G)

Share ofend-of-year

assets

(H)Disproportion-

to allocations?

(I)

Code V-UBIamount in box20 of Schedule

(A)

General ormanagingpartner?

country) Yes No K-1 (Form 1065) a NoNational Student

Housing-South Dakota, LLC -

20-2129839, 100 S Phillips

Ave, Sioux Falls, SD 57104 Investment SD Sanford Health elated 0. 0. X N/A

R.A.C. Rentals, LLC -

26-1961077 , 100 S Phillips

Ave, Sioux Falls, SD 57104 Investment SD Sanford Health elated 0. 0. X N/A

Part IV Identification of Related Organizations Taxable as a Corporation or Trust

(A)

Name, address, and EINof related organization

(B)

Primary activity

(C)

Legal domicile(state orforeigncountry)

(D)


(E)

Type of entity(C corp, S corp,

or trust)

(F)

Share of totalincome

(G)

Share ofend-of-year

assets

(H)

Percentageownership

Heart Partners at Sanford - 46-0449572

1305 W 18th Street

Sioux Falls, SD 57117 Healthcare SD Sanford Health CORP 0. 0. .00%

Sanford Home Medical Equipment, Inc. - 46-0388597

2710 W 12th Street

Sioux Falls, SD 57105 Healthcare Equipment SD Sanford Health CORP 0. 0. .00%

Sanford Health Plan - 91-1842494

300 Cherapa Place

Sioux Falls , SD 57103 Insurance SD Sanford Health CORP 0. 0. .00%

Sanford Health Plan of MN - 46-0445852

300 Cherapa Place

Sioux Falls, SD 57103 Insurance MN Sanford Health CORP 0. 0. .00%

832162 12-23-08 4 b Schedule R (Form 990) 2008

Schedule R (Form 990) 2008 Sanford Health Group Return 46-0462161 Page 3

PartV Transactions With Related Organizations

Note. Complete line 1 if any entity is listed in Parts II, III, or IV Yes No

1 During the tax year, did the organization engage in any of the following transactions with one or more related organizations listed in Parts lI-IV9

a Receipt of (i) interest (ii) annuities (iii) royalties (iv) rent from a controlled entity is x

b Gift, grant, or capital contribution to other organization(s) 1b x

c Gift, grant, or capital contribution from other organization(s) - is x

d Loans or loan guarantees to or for other organization(s) id

e Loans or loan guarantees by other organization(s) le

f Sale of assets to other organization(s) if x

9 Purchase of assets from other organization(s) lg x

h Exchange of assets 1h x

i Lease of facilities, equipment, or other assets to other organization(s) - 1i X

j Lease of facilities, equipment, or other assets from other organization(s) I j X

It Performance of services or membership or fundraising solicitations for other organization(s) 1k x

I Performance of services or membership or fundraising solicitations by other organization(s) 11 X

m Sharing of facilities, equipment, mailing lists, or other assets 1m x

n Sharing of paid employees In x

o Reimbursement paid to other organization for expenses 10 X

p Reimbursement paid by other organization for expenses ip X

q Other transfer of cash or property to other organization(s) 1q x

r Other transfer of cash or property from other organization(s) 1r x

2 If the answer to any of the above is "Yes.' see the instructions for information on who must complete this line. includina covered relationships and transaction thresholds.

(A)

Name of other organization (s)

(B)Transactiontype (a-r)

(C)Amount involved

(1) Sanford Health R 134 615,195.

(2) Sanford Health C 213,676.

(3)

(4)

(5)

(6)

832163 12-23-08 47 Schedule R (Form 990) 2008

Schedule R (Form 990) 2008 Sanford Health Group Return 46- 04621 61 Page 4

Part VI Unrelated Organizations Taxable as a Partnership

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue)that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(A)

Name, address, and EINof entity

(B)

Primary activity

(C)

Legal domicile(state or foreign

(D)

Ae au partnersc o oca

organizations?

(E)

Share of endof-year assets

(F)

oisproaa-,liaetios?

(G)

Code V-UBIoamountf

Schedulen box 20

of K-1

(H)

General ormanagingpartner?

country) Yes No Yes No (Form 1065) Yes No

Schedule R (Form 990) 2008

83216412-23-08 4 8

SANFORD HEALTH GROUP RETURN

42-0462161

FOR FISCAL YEAR ENDING JUNE 30, 2009

The following entities will be included on the group return for Sanford Health for the fiscal year ended

June 30, 2009:

- Sanford Clinic 46-0447693

- Sanford Health Network 46-0388596

- Sanford Home Health 46-0282134

- Sanford Medical Center 46-0227855

Client Copy

Form 8868 Application for Extension of Time To File an,(Rev April 2009 ) Exempt Organization Return OMB No 1545-1709

Department of the Treasury ► File a separate application for each return.interna l Revenue Service

• If you are filing for an Automatic 3-Month Extension , complete only Part I and check this box . . . . . . . . . FXI

• If you are filing for an Additional (Not Automatic) 3-Month Extension , complete only Part II (on page 2 of this form).

Do not complete Part ll unless you have alread y been g ranted an automatic 3-month extension on a previousl y filed Form 8868.

Automatic 3-Month Extension of Time. Only submit original (no copies needed).

A corporation required to file Form 990-T and requesting an automatic 6-month extension-check this box and complete

Part I only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ► q

All other corporations (including 1120-C filers), partnerships, REMICs, and trusts must use Form 7004 to request an extension of

time to file income tax returns.

Electronic Filing ( e-file ). Generally, you can electronically file Form 8868 if you want a 3-month automatic extension of time to fileone of the returns noted below (6 months for a corporation required to file Form 990-T). However, you cannot file Form 8868electronically if (1) you want the additional (not automatic) 3-month extension or (2) you file Forms 990-BL, 6069, or 8870, groupreturns, or a composite or consolidated Form 990-T. Instead, you must submit the fully completed and signed page 2 (Part II) of Form8868. For more details on the electronic filing of this form, visit www.irs.gov/efde and click on a-file for Charities & Nonprofits.

Type or

print

File by thedue date forfiling yourreturn. Seeinstructions

Name of Exempt Organization

SANFORD HEALTH GROUP RETURNNumber, street , and room or suite no If a P 0 box , see instructions

1305 WEST 18TH STREET , PO BOX 5039


42-0462161

City, town or post office , state , and ZIP code . For a foreign address, see instructions

SIOUX FALLS, SD 57117-5039

Check type of return to be filed (file a separate application for each return):

® Form 990 q Form 990-T (corporation) q Form 4720

q Form 990-BL q Form 990-T (sec. 401(a) or 408(a) trust) q Form 5227

q Form 990-EZ q Form 990-T (trust other than above) q Form 6069

q Form 990-PF q Form 1041-A q Form 8870

• The books are in the care of .BILL-- MARLETTE-----------------

Telephone No. ► 605-333_-654.8- ----------------

FAX No. ► ------------ - - ------------------- - --------• If the organization does not have an office or place of business in the United States , check this box . . . . ► q

• If this is for a Group Return , enter the organization ' s four digit Group Exemption Number (GEN) 3720 . If this isfor the whole group , check this box ...... ► ® . If it is for part of the group , check this box ...... ► q and attach

a list with the names and EINs of a ll members the extension will cover.

1 I request an automatic 3-month - (6 months for a corporation required - -to file 'Form - 990-T) extension of ie

until FEBRUARY 15 , 20 10 , to file the exempt organization return for the organization named above . The extension is

for the organization ' s return for:

► q calendar year 20----- or

► ® tax year beginning MAY 1 ___ , 20 09__ , and ending JUNE 30 09

2 If this tax year is for less than 12 months, check reason* q Initial return q Final return ® Change in accounting period

3a If this application is for Form 990 - BL, 990 - PF, 990 -T, 4720, or 6069 , enter the tentative tax,

less any nonrefundable credits . See instructions.

If this application is for Form 990-PF or 990-T, enter any refundable credits and estimated tax

payments made. Include any prior year overpaym ent allowed as a credit.

c Balance Due. Subtract line 3b from line 3a. Include your payment with this form, or, if required,deposit with FTD coupon or, if required, by using EFTPS (Electronic Federal Tax PaymentSystem). See instructions.

$ NONE

$ NONE

$ NONE

Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453-EO and Form 8879-EO

for payment instructions.

For Privacy Act and Paperwork Reduction Act Notice , see Instructions . Form 8868 (Rev 4-2009)

ISA

Cl ient Copy

Form 8868 (Rev. 4-2009) Page 2

• If you are filing for an Additional (Not Automatic) 3-Month Extension , complete only Part II and check this box . ►Note . Only complete Part II if you have already been granted an automatic 3-month extension on a previously filed Form 8868.

• If you are filing for an Automatic 3-Month Extension , complete only Part I (on page 1).

• Additional (Not Automatic) 3-Month Extension of Time. Only file the on final (no copies needed ) .

Type or Name of Exempt Organization Employer identification number

print SANFORD HEALTH GROUP RETURN 42-0462161

File by the Number, street, and room or suite no. If a P.O. box, see instructions . For IRS use only

dueendtefor 1305 WEST 18TH STREET, PO BOX 5039eextfiring the City, town or post office, state , and ZIP code. For a foreign address, see instructions.

Instructions. SIOUX FALLS, SD 57117-5039

Check type of return to be filed (File a separate application for each return):

® Form 990 q Form 990-PF q Form 1041-A q Form 6069

q Form 990-BL q Form 990-T (sec. 401(a) or 408(a) trust) q Form 4720 q Form 8870q Form 990-EZ q Form 990-T (trust other than above) q Form 5227

STOPI Do not complete Part II if you were not already granted an automatic 3-month extension on a previously filed Form 8868.

*The books are In the care of ► BILL MARLETTE

Telephone No. ► 605-333-6548_ ________ FAX No. ►• If the organization does not have an office or place of business in the United States, check this box . . . . ► q

• If this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) 3720 . If this isfor the whole group, check this box ...... ► ® . If it is for part of the group, check this box...... ► q and attach alist with the names and EINs of all members the extension is for.

4 I request an additional 3-month extension of time until __________ MAY__ 17 - 1201-9-MAY 1 20 0 9 , and ending..-- JUNE 30 __,2009-.-----5 For calendar year _________, or other tax year beginning - ' -----------

6 If this tax year is for less than 12 months, check reason: q Initial return El Final return ® Change in accounting period

7 State in detail why you need the extension ADDITIONAL TIME IS NEEDED TO GATHER THE--------------------------------------------------------------------------------

INFORMATION NECESSARY TO FILE A COMPLETE AND ACCURATE RETURN.-------------------------NECESSARY--T---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8a If this application Is for Form 990-BL, 990-PF, 990-T, 4720, or 6069, enter the tentative tax,less any nonrefundable credits. See instructions. 8a $ NONE

b If this application is for Form 990-PF, 990-T, 4720, or 6069, enter any refundable credits andestimated tax payments made. Include any prior year overpayment allowed as a credit and anyamount paid previously with Form 8868. 8b $ NONE

c Balance Due. Subtract line 8b from line 8a. Include your payment with this form, or, If required, depositwith FTD coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System). See instructions. 8c $ NONE

Signature-and Veri ication-Under penalties of perjury, I declare that I have examined this form, Including accompanying schedules and statements, and to the best of my knowledge and belief,it is true, correct, and complete, and that I am authorized to prepare this form

► UW Title ► C46' I Date ► Z -,5- io

Form 8M (Rev. 4-2009)

CLIENT COPY

Documents

ReturnofOrganization ExemptFromIncomeTax omsNo '5-0'990s.foundationcenter.org/990_pdf_archive/460/... · & vascular, children' s , cancer, neuroscience, trauma, orthopedics, and women