SCOTLAND, S.D. — Landmann-Jungman Memorial Hospital will transition from a Critical Access Hospital to a Rural Emergency Hospital (REH) on July 1, 2025.
The move, approved by the hospital’s local governance board, will make it the first facility in South Dakota to adopt the REH designation — a new provider type introduced by the Centers for Medicare and Medicaid Services (CMS) to support emergency and outpatient care in rural communities.
The REH model is intended to help rural hospitals maintain essential services by focusing on emergency and outpatient care, rather than inpatient admissions, and by offering adjusted Medicare payment rates. As part of the transition, Landmann-Jungman will discontinue acute inpatient and swing bed services. The hospital currently averages fewer than one inpatient per day.
Founded in 1968 and managed by Avera since 1999, Landmann-Jungman Memorial Hospital serves the northern part of Bon Homme County and is one of two hospitals in the area, alongside St. Michael’s Hospital in Tyndall. The Scotland-based facility has evolved over the years through facility expansions, including the addition of a clinic in 1996, a retail pharmacy in 2002 and a clinic renovation in 2009.
Melissa Gale, CEO and Hospital Administrator, said the decision followed a comprehensive assessment of operational needs, financial considerations and patient care data. She says the new model will allow the facility to keep a maximum amount of services in the community, while providing a consistent revenue stream.
“We have done an extensive analysis from various perspectives, including operations, finances, and patient needs,” said Gale. “The board sees this as a better option for our local health care facility and sustaining local health care into the future. We are excited for opportunities that will exist to enhance local health services.”
Under the REH model, the hospital will continue to provide observation beds for patients who arrive at the emergency department or outpatient clinic and require short-term monitoring. Patients needing a higher level of care will continue to be transferred to other facilities as they are today. Skilled nursing care will remain available through the local nursing home, which continues to serve patients requiring longer-term recovery and rehabilitation.
Under the new model, Landmann-Jungman will be able to retain all staff members.
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