SDHA TAKES ON ADVOCACY — AND BEER IS THE WINNER (1932–1933)
For our March installment of A Century Strong: From the SDAHO Vault, we explore a pivotal chapter in the South Dakota Hospital Associations (SDHA’s) early history — one that marked the Association’s first major step into statewide advocacy. It was a moment defined by financial crisis, political change, and an unexpected hero in hospital funding: beer.
Building an Advocacy Voice
The 1932 SDHA Conference, held in Mitchell, South Dakota, set the stage for what would become one of the organization’s most significant early accomplishments. It was there that SDHA appointed its first Legislative Committee, led by Rev. C.M. Austin of Sioux Valley.
This committee was tasked with strengthening the Association’s ability to influence public policy at a time when hospitals were struggling for survival.
South Dakota Faces Crisis
By 1933, conditions across the state had grown steadily worse.
A sweeping political shift occurred during the November 1932 election, followed by deepening economic hardship. In response, Governor Tom Berry called a Special Session of the Legislature for August 1933.
The marquee issue:
Legalizing the sale of beer and creating a licensing and tax structure to use the revenue for relief efforts.
For South Dakota’s hospitals—still battling the fallout of the Depression—this presented a rare opportunity.
SDHA Goes to the Capitol
On June 2, 1933, the SDHA Legislative Committee met in Huron to prepare its recommendations for the statewide conference scheduled in Sioux Falls later that summer.
As the special session approached, the committee partnered with a group of influential community members and met directly with Governor Berry. Their request was simple but critical:
Dedicate a portion of beer tax revenue to South Dakota hospitals to offset declining income and ensure access to care for those most in need.
The Governor was receptive and offered his support. But the real challenge played out on the floor of the Legislature.
A Landmark Victory for Hospitals
After significant debate and persistent advocacy, SDHA and its partners succeeded. Roughly 50% of the proceeds from the newly established Beverage Revenue Fund was directed back to counties starting August 7, 1933 — with the express purpose of paying for hospital care for indigent patients.
It was an unprecedented achievement.
By August 1, 1951, the total amount distributed back to counties reached an extraordinary $3,008,727.97. Leaders at the time noted that few, if any, hospital associations in the nation could point to such a meaningful, long-term funding victory.
Tracking the Impact
By 1942, the Association was regularly reporting the distribution of Beverage Revenue Fund dollars at its Annual Convention. That year alone, $194,645.11 was disbursed statewide based on the 1935 census figures.
The success of this advocacy effort demonstrated the power of a unified hospital voice — and laid the foundation for what would become (SDAHO’s) modern role in shaping policy that supports health care access for all South Dakotans.
Stay tuned for next month’s historical snapshot as we continue exploring SDAHO’s first century of leadership,
To view previous A Century Strong: From the SDAHO Vault visit the links below.
