14 | South Dakota

Score: 3.41 (US mean: 3.20, median: 3.17), Rank: 14

The Healthcare Openness and Access Project (HOAP) measures how open and accessible each state’s healthcare system is to patient and provider preferences. The overall HOAP index is the average of 10 categories, referred to as subindexes, each of which is in turn an average of multiple indicators.

The HOAP index ranks South Dakota near the top of the 51 jurisdictions analyzed. Some of the state’s highest scores are in the Taxation Subindex and the Occupational Regulation Subindex, and some of its lowest are in the Direct Primary Care Subindex and the Telemedicine Subindex. South Dakota’s score and rank in each subindex is given below, along with its score for each individual indicator.

For the overall index, the subindexes, and the indicators, 1 is the lowest score and 5 is the highest.

Corporate Subindex

Score: 3.00 (US mean: 2.59, median: 2.00), Rank: 17

A higher score indicates that healthcare professionals and others have greater flexibility with regard to ownership, business structure, and employment in the healthcare sector.

IndicatorState scoreUS mean
State allows the corporate practice of medicine 12.25
State allows businesses to employ licensed healthcare professionals53.04
State allows nonlicensed individuals to own/operate medical entities52.88
State allows licensed individuals to split fees with nonlicensed individuals12.18

Direct Primary Care Subindex

Score: 2.00 (US mean: 3.49, median: 3.33), Rank: 50

A higher score indicates that the state’s environment is more conducive to the establishment of direct primary care (DPC) practices as an alternative method of financing primary care.

IndicatorState scoreUS mean
State has pro-DPC laws33.94
State has higher market demand for DPC22.96
State has more DPC practices per capita13.57

Insurance Subindex

Score: 3.60 (US mean: 3.44, median: 3.60), Rank: 17

A higher score indicates that insurers have greater flexibility to determine the structure and pricing of health insurance policies.

IndicatorState scoreUS mean
State mandates fewer health insurance benefits21.61
State mandates less rate review12.29
State does not expand on federal age rating limitations54.73
State does not expand on federal tobacco rating limitations54.29
State does not expand on federal geographic rating limitations54.25

Medical Liability Subindex

Score: 4.00 (US mean: 3.34, median: 3.33), Rank: 3

A higher score indicates that physicians and others are less constrained by the threat of malpractice litigation.

IndicatorState scoreUS mean
State physicians pay fewer malpractice actions53.76
State physicians pay lower malpractice premiums53.49
State has adopted more reforms to modulate malpractice litigation22.76

Occupational Regulation Subindex

Score: 4.20 (US mean: 3.13, median: 3.00), Rank: 2

A higher score indicates that medical professionals have easier access to licensure and employment and greater discretion regarding the services they offer.

IndicatorState scoreUS mean
State allows medical licensure reciprocity with other states32.80
State has fewer continuing medical education requirements52.80
State allows nurse practitioners broad scope of practice53.43
State has fewer optician licensing requirements53.55
State allows direct-entry midwifery33.08

Pharmaceutical Access Subindex

Score: 3.50 (US mean: 3.11, median: 3.00), Rank: 12

A higher score indicates that patients have easier access to certain classes of drugs, including experimental and unconventional treatments.

IndicatorState scoreUS mean
State allows greater access to experimental drugs53.04
State allows access to medical marijuana34.14
State allows easier access to pseudoephedrine54.02
State allows access to oral contraceptives without physician prescription11.24

Provider Regulation Subindex

Score: 3.00 (US mean: 2.41, median: 2.67), Rank: 9

A higher score indicates that healthcare providers have greater flexibility to determine hospital and pharmacy operations.

IndicatorState scoreUS mean
State has fewer certificate-of-need restrictions52.86
State puts fewer restrictions on compounding pharmacies11.98
State lacks burdensome prescription monitoring mandates32.39

Public Health Subindex

Score: 3.67 (US mean: 3.86, median: 4.00), Rank: 27

A higher score indicates that residents have easier access to substance abuse remedies and greater discretion when offering medical assistance to other people.

IndicatorState scoreUS mean
State allows access to e-cigarettes32.88
State allows access to naloxone33.88
State has strong “Good Samaritan” protection54.80

Taxation Subindex

Score: 4.33 (US mean: 3.67, median: 3.67), Rank: 7

A higher score indicates that the state imposes a lower burden of taxation for certain healthcare services, financing methods, and devices.

IndicatorState scoreUS mean
State has fewer provider taxes42.14
State has fewer health savings account (HSA) taxes54.69
State has fewer medical device taxes44.20

Telemedicine Subindex

Score: 2.75 (US mean: 3.01, median: 3.00), Rank: 30

A higher score indicates that the state’s environment is more conducive for telemedicine practitioners.

IndicatorState scoreUS mean
State reimburses Medicaid providers at parity for telemedicine33.47
State has less restrictive telepresenter requirements54.24
State reimburses Medicaid providers at parity for remote monitoring22.20
State allows online prescribing12.14

For a complete explanation of the methodology used to calculate South Dakota’s HOAP index score, see Darcy N. Bryan, Jared Rhoads, and Robert Graboyes, “Healthcare Openness and Access Project: Mapping the Frontier for the Next Generation of American Healthcare, June 2018 Update” (Project Overview, Mercatus Center at George Mason University, Arlington, VA, April 2019).