South Dakota Hospital Invests in Employee Housing Subdivision

Fall River Health Services in Hot Springs, South Dakota, is taking an innovative approach to combatting its workforce shortage by investing directly in employee housing. The hospital is funding a new subdivision that will create 48 affordable homes, aiming to attract and retain essential healthcare workers.

The initiative represents a significant financial commitment, with the hospital spending $2.3 million towards the total $3.4-million cost of the subdivision. This direct investment in permanent housing stock is a novel strategy among employers in the region, distinguishing it from temporary or less stable housing solutions.

Addressing Workforce Shortages

The hospital’s decision to fund the housing project is a direct response to a critical shortage of healthcare professionals. As of late May, Fall River Health Services had 19 open positions, a gap representing 10% of its required workforce of 190 employees. Many of these vacancies are in direct patient care roles.

According to Jesse Naze, chief financial officer at Fall River Health, the lack of affordable and suitable local housing has been a significant barrier to recruitment. In recent years, the hospital has lost dozens of prospective healthcare workers who were unable to secure adequate accommodation in the area.

A Trend in South Dakota Employers

Fall River Health Services is not the only South Dakota employer to recognise the importance of providing housing for its staff. However, its approach is unique in its commitment to long-term, permanent housing solutions.

Other businesses in the state have implemented different strategies to address housing needs for their employees. Rick Hustead, president of Wall Drug, told News Watch in 2025 that the company provides mobile homes and other accommodations for over 100 seasonal employees. In other towns, business operators have offered RVs for seasonal workers. These measures, while helpful, do not offer the stability and permanence of the housing development undertaken by Fall River Health Services.

The new subdivision is located near the hospital, aiming to reduce commute times and make employment at Fall River Health more attractive to potential hires. The development will consist of 48 new homes, providing much-needed housing supply in Hot Springs.

The project highlights a growing awareness among employers that the availability of affordable and accessible housing is intrinsically linked to their ability to attract and retain a skilled workforce, particularly in sectors facing national shortages. The success of this initiative could serve as a model for other rural healthcare facilities and businesses facing similar challenges.

Key facts

This development directly tackles the issue of housing supply in a rural area where it has become a barrier to essential services. By investing in permanent housing, Fall River Health Services is not only supporting its employees but also contributing to the long-term economic stability and vitality of the Hot Springs community. The project’s focus on workforce housing demonstrates a forward-thinking approach to human resource management and community development, addressing a critical need that impacts both the employer and the local area.

Source: Planetizen News, https://www.planetizen.com/news/2026/06/137776-south-dakota-hospital-funding-new-subdivision-its-employees