Philanthropy: a priceless lesson in healthcare leadership--the Sanford Health story.

SUMMARY At Sanford Health, philanthropic leadership has been transformational in nature. Denny Sanford's $400 million gift to Sanford Health (the largest known gift to an American healthcare organization) demonstrates how philanthropic leadership transforms an organization by enhancing the role it will play in its community, region, and beyond. This article describes how the gift came about, the accomplishments in fulfilling the donor's intentions, the leadership initiatives and challenges associated with the gift, and its overall impact on the organization. Philanthropy can teach us things. For example, philanthropy can teach healthcare institutions lessons about core values, a compelling vision, and a commitment to action. These qualities are the essence of philanthropy. As senior executives and board members apply these lessons to planning, trust building, and communications critical to obtaining philanthropic support, their organization has the opportunity to move from success to significance in fulfilling its mission. THE GIFT On February 3, 2007, to an audience of 2,000 at the Sioux Falls Washington Pavilion, I had the privilege to announce that our health system was the recipient of a $400 million gift from T. Denny Sanford, chairman of United National Corporation, First Premier Bank, and Premier Bankcard. Mr. Sanford's donation is the largest known gift ever made to a single healthcare organization in America. "Now is the time to set things in motion to truly make a difference in people's lives and improve the human condition," Mr. Sanford said. In recognition of Mr. Sanford's gift and to honor him, the Sioux Valley Board of Trustees requested and was graciously allowed to change the name of our health system from Sioux Valley Hospitals & Health System to Sanford Health. Sanford Health is a private, nonprofit health system founded in 1894, and now serves patients in a four-state region through tertiary service development in Centers of Excellence including Children's, Women's, Cancer, Cardiovascular, Trauma, Orthopedics, and Neurosciences. Sanford Health operates a full-service health plan, 115 clinics, and 23 hospitals throughout 70 communities. It has been selected five times as a Solucient Top 100 Hospital and has top 10 percent Joint Commission accreditation scores. Sanford Health also is the primary teaching hospital for the Sanford School of Medicine-University of South Dakota (USD). Another important element of Sanford Health is the Sanford Health Foundation, which manages over 500 funds. IMPROVING THE HUMAN CONDITION Proceeds from Mr. Sanford's gift are being used to fund the Sanford Initiatives, which are significantly expanding Sanford Health's research activities and healthcare for children. These initiatives are emblematic of the core values, vision, and commitment to action that the leadership of Sanford Health shares with Mr. Sanford. The initiatives also represent my personal commitment to fulfill the intent of Mr. Sanford's gift. Here are some things the money is doing: The Sanford Project will identify a promising area for focused medical research on one pressing healthcare issue, and assemble top scientists to undertake a specific research effort to resolve it. The Battelle Institute has been retained to assist in the Sanford Project and the selected focus area will be announced June 6, 2008 as part of the first annual Sanford Festival, a week-long series of meetings, announcements, and celebrations to commemorate our first full year as Sanford Health. Sanford Research/USD is expanding the scope and number of research institutes at Sanford Health, including cardiovascular, women's health, cancer biology, disabilities and health disparities, nutrition and metabolic disease, pediatrics, and genomics. This is being done in combination with a growing clinical research program, including National Cancer Institute relationships, and work in medical device and technology applications in vascular, cardiac, and neurosciences. …