RAPID CITY, S.D. – Sanford Health has notified Wellmark that it intends to terminate its contract effective July 1, 2027, unless the two sides can reach a new agreement.
Sanford officials say the dispute centers on contract language that they claim would give Wellmark too much authority to make changes affecting patient care and reimbursement rates after an agreement is signed. Sanford says it cannot support a contract that allows an insurance company to unilaterally alter terms without the health system’s consent.
According to Sanford Chief Financial Officer Nick Olson, the health system has been negotiating with Wellmark since February but believes the insurer’s demands could affect where patients receive care and how healthcare services are paid for.
Sanford says it remains open to reaching a new agreement before the current contract expires in June 2027. However, if no deal is reached, the change could affect approximately 130,000 Wellmark members who have received care at Sanford facilities across South Dakota in the past year.
In the Black Hills region, Sanford says nearly 10,000 patients at seven clinic locations could be impacted by a contract termination.
Sanford officials argue that preserving access to local healthcare services, particularly in rural communities, requires stable reimbursement agreements and shared decision-making between providers and insurers. Wellmark members with questions about their coverage are encouraged to contact their insurance provider directly.
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