Avera Mckennan
Public records show a registered, tax-exempt organization in good standing.
What it says it does
Avera is a health ministry rooted in the Gospel. Our mission is to make a positive impact in the lives and health of persons and communities by providing quality services and guided by Christian values.
- Income
- $1.9 billion
- Spending
- $1.8 billion
- Spent on programs
- 92%
- Reserves
- 3.1 months of spending
- Largest source of income
- fees for its services, 89%
- Employees
- 10,231
- Volunteers
- 1,472
- Highest pay
- $1.8 million, orthopedics/surgery
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Financial health
Good: 75 out of 100. Higher than 64% of charities in its peer group (health care, over $100m).
Reserves
20 of 35Spendable reserves would cover 3.1 months of spending.
Debt
10 of 20It owes 45% of what it owns.
Living within its means
15 of 15Income exceeded spending by 5% of income.
Income trend
15 of 15Income rose 9% on the year before.
Spending floor
15 of 1592% of spending went to programs and raising each dollar of donations cost 2 cents.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Governance
Strong: 95 out of 100. Higher than 36% of charities in its peer group (health care, over $100m).
Independent board
25 of 2513 of 20 voting board members are independent.
Conflict of interest policy
15 of 15Has a written conflict of interest policy.
Whistleblower policy
8 of 8Has a written whistleblower policy.
Record keeping policy
7 of 7Has a written policy on keeping and destroying records.
Board minutes
5 of 5Keeps minutes of board meetings.
Board sees the tax return
10 of 10Gave the board a copy of this return before filing it.
Pay set independently
0 of 5Reports no independent review process for its chief executive's pay.
Independent check of accounts
15 of 15Its accounts were audited by an independent accountant.
No reported misuse
10 of 10Reports no diversion of assets, excess benefits or loans to insiders.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Impact evidence
Describes programs. Its tax return describes what it does but we have found no measurable results in it.
Programs described in its return (1)
- $1.6 billion spent. 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. As a member of the Avera Health Network, Avera McKennan upholds the vision of the Presentation and Benedictine Sisters to work through collaboration to provide quality, effective health ministry, and to improve the healthcare of individuals and our communities through a regionally integrated network of persons and institutions. Avera McKennan engages in activities designed to improve the health of individuals and communities in response to a calling to heal the sick, the elderly, and the oppressed.
Source: Form 990 for the year ending June 30, 2025, filed with the Internal Revenue Service. Rating method 2026.2. How we rate
Legitimacy checks
Is it registered with the IRS? Passed.
Listed in the IRS master file of tax-exempt organizations as a 501(c)(3) charitable organization.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Has the IRS revoked its tax-exempt status? Passed.
Not on the IRS automatic revocation list.
Source: Automatic revocation of exemption list, Internal Revenue Service, file dated October 13, 2026.
Are donations tax-deductible? Worth knowing.
Not individually listed by the IRS as eligible, which is usual for local chapters covered by a parent organization's exemption. The master file records contributions to it as deductible.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Is it keeping up with its IRS filings? Passed.
Most recent return on file covers the year ending June 2025.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
How long has it been tax-exempt? Passed.
Recognized by the IRS since July 1942.
Source: Exempt Organizations Business Master File, Internal Revenue Service, file dated October 13, 2026.
Is it in good standing with state regulators? Passed.
Not on California's list of charities barred from soliciting. Other states are not yet checked.
Source: May Not Operate or Solicit for Charitable Purposes list, California Attorney General, Registry of Charities and Fundraisers, file dated October 21, 2026.
Ratings and checks are our reading of public records, using the published method. They are not a statement about anyone's honesty. If you work for this organization, you can send corrections or results, confirm you want gifts through Veridonate, or ask to be removed from giving.