SIOUX FALLS, S.D. (KELO) — According to 2021 documents filed with the Internal Revenue Service, Sanford Health recorded a total revenue of $5.2 billion and total expenses of $4.8 billion.  

Sanford Health provided KELOLAND News the 225-page documents submitted to the IRS as a Form 990, which most organizations claiming federal tax-exempt status must file yearly. In Nov. 2021, the Form 990 showed Sanford’s $49 million pay out to former CEO Kelby Krabbenhoft. 

You can view the full document attached below. 

Page 220 of Sanford Health 2021 990 IRS documents
Contributed to DocumentCloud by Eric Mayer (KELO-TV) • View document or read text

In the IRS documents, Sanford Health claims public charity status because it is a hospital or cooperative hospital service organization under the IRS. 

“Sanford Health provides services at every level from critical access hospitals to tertiary and quaternary care. The Sanford footprint includes over 220,000 square miles with a nine state service area and a network of children’s primary care clinic locations across the country and world,” Sanford’s statement of program service accomplishments states. “Sanford Health operates full-time emergency centers and provides emergency care to everyone regardless of their ability to pay.” 

The 2021 documents appear to match similar revenues, expenses and net income from previous IRS Form 990 filings in 2020, 2019 and 2018. ProPublica, a national investigative journalism website, has Sanford Health’s Form 900 filings dating back to 2011. 

In the months January to December 2021, Sanford Health reported to the IRS a total revenue of $5,228,573,954. That’s up from $4.7 billion in 2020 and $4.4 billion in 2019. 

Sanford Health reported to the IRS total expenses of $4,805,968,539, up from $4.3 billion in expenses in 2020 and $4.2 billion expenses in 2019. 

When total expenses are subtracted from total revenue on the IRS documents, Sanford Health finished the year with $394.5 million. That’s up from $389 million in 2020 and $203 million in 2019, according to the IRS documents listed on ProPublica

There are no revenue or expenses reported after December 2021. Organizations can also file amended returns which may not be reflected in the data. 

As part of the Form 990, Sanford needed to provide compensation of officers, directors, trustees, key employees, highest compensated employees and independent contractor. The documents show Sanford paid $2.8 billion in salaries and employee benefits and $1.9 billion in other expenses. 

Sanford CEO and President Bill Gassen reported a total compensation of $3.3 million. Of that reported $3.3 million, $1.7 million is a base salary and $1.1 million is bonus and incentive pay. The remainder is classified as other reportable income, retirement and other deferred compensation, and non taxable benefits, according to the IRS from.

For independent contractors, Sanford paid Omaha-based employment consultant FocusOne Solutions $119.5 million. 

The IRS Form 990 is different from an independent financial audit. Minnesota Public Radio cited an audit of Minneapolis-based Fairview Health that showed it reported an operating loss of $132.6 million in 2021.

ProPublica does not list a Form 990 for 2021 for Fairview Health, but a 2019 report shows $52 million more expenses than revenue.    

On Tuesday, Sanford and Fairview announced the health systems signed a non-binding letter of intent for a merger.