Avera McKennan

What it reported doing in 2024

Avera McKennan's mission is to provide healthcare services to Sioux Falls, South Dakota residents and residents of the surrounding area. Avera McKennan is a 501(c)(3) organization affiliated with Avera Health. Avera McKennan consists of a 641-bed hospital, a 53-bed heart hospital and a 126-bed nursing home in Sioux Falls, SD. Major service lines include oncology, surgery, obstetrics, pediatrics, neonatology, emergency and trauma, critical care including EICU, radiology and diagnostic imaging, psychiatry, behavioral health, pulmonary, orthopedics, neurology, cardiology, and gastroenterology. Transplant services include solid organ (kidney and pancreas) and bone marrow transplant.Avera McKennan owns or leases rural critical hospitals and a nursing home in South Dakota including a 13-bed critical access hospital and a 30-bed nursing home in Gregory, SD, a 25-bed critical access hospital in Milbank, SD, a 23-bed critical access hospital in Dell Rapids, SD, an 18-bed critical access hospital in Flandreau, SD, an 11-bed critical access hospital in Miller, SD (Hand County), and an 11-bed critical access hospital in Rock Rapids, IA. Services offered by the rural critical access hospitals include radiology and imaging, colonoscopy and endoscopy, therapy and rehabilitation, 24-hour emergency care, chemotherapy, orthopedics, cardiovascular testing, surgery, dialysis, and obstetrics.In addition, Avera McKennan provides clinical care, secondary and primary, through physician clinics in South Dakota, Northwest Iowa, Southwest Minnesota, and Northeastern Nebraska. The physician clinics provide primary care and urgent care, and specialties such as cardiology, dermatology, endocrinology, gastroenterology, hematology, hepatology, infectious disease, internal medicine, neonatology, nephrology, neurology, ob/gyn, oncology, ophthalmology, pediatrics, orthopedics, rheumatology, pain management, psychiatry, pulmonology, general surgery, and vascular services. Following is a breakdown of these statistics by facility: Avera McKennan Hospital 26,881 Acute patient discharges 1,976 Newborn patient discharges 496,817 Outpatient visits 3,757 Newborn patient days 981,919 Clinic visitsAvera Heart Hospital 3,059 Acute patient discharges 34,830 Outpatient visits 87,097 Clinic visitsAvera Prince of Peace 43,307 Long-term care resident days 361 Long-term care patient dischargesAvera Gregory Hospital (CAH) 207 Acute patient discharges 88 Swing-bed patient discharges 11,859 Outpatient visits 648 Swing-bed patient days 14,995 Clinic visitsAvera Rosebud Country Care Center 10,346 Long-term care resident days 23 Long-term care patient dischargesAvera Milbank Hospital (CAH) 258 Acute patient discharges 36 Newborn patient discharges 57 Swing-bed patient discharges 18,183 Outpatient visits 54 Newborn patient days 409 Swing-bed patient days 20,656 Clinic visitsAvera Dell Rapids Hospital (CAH) 143 Acute patient discharges 67 Swing-bed patient discharges 10,984 Outpatient visits 702 Swing-bed patient days 14,388 Clinic visitsAvera Flandreau Hospital (CAH) 109 Acute patient discharges 6 Swing-bed patient discharges 8,663 Outpatient visits 54 Swing-bed patient days 7,809 Clinic visitsAvera Hand County Hospital (CAH) 131 Acute patient discharges 39 Swing-bed patient discharges 10,599 Outpatient visits 376 Swing-bed patient days 8,266 Clinic visitsAvera Merrill Pioneer Hospital (CAH) 70 Acute patient discharges 37 Swing-bed patient discharges 9,130 Outpatient visits 409 Swing-bed patient days 5,693 Clinic visitsAvera McKennan maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges forgone for services and supplies furnished under its charity care policy and equivalent service statistics. The amount of charges foregone, based on established rates, were $66,380,580.Avera McKennan also provides community benefit health activities at less than or at no cost to support those in the area serviced, see Schedule H. A

Financial Efficiency

• Mission deployment rate: 96.2%; rating input score 96
• Program expense ratio: 91.9%; rating input score 92
• Fundraising efficiency: $63.4 raised per $1 spent on fundraising; rating input score 78; 78th percentile among comparable filings

Transparency & Controls

• Consistency checks: 92.9%; rating input score 93; 17th percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: 79%; rating input score 79; 17th percentile among comparable filings
• Major donor itemization: Yes; rating input score 100
• Related-party transparency: Yes; rating input score 100

Accountability

• Independent voting board: 65%; rating input score 65; 18th percentile among comparable filings
• Governance controls: 8 of 9 controls in place; rating input score 89
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 4.8%; rating input score 56; 56th percentile among comparable filings
• Total-asset coverage ratio: 1.18; rating input score 45; 45th percentile among comparable filings
• Liabilities to assets ratio: 0.45; rating input score 40; 40th percentile among comparable filings
• Officer compensation ratio: 0.7%; rating input score 80; 80th percentile among comparable filings

Growth

• Program expense growth: 8.3% per year; rating input score 100; 66th percentile among comparable filings
• Revenue growth: 7.1% per year; rating input score 100; 61st percentile among comparable filings
• Asset growth: 6.8% per year; rating input score 100; 50th percentile among comparable filings