SDCL § 58-40-10: Contracts with subscribers--Required provisions.

A hospital service plan corporation may enter into contracts for the rendering of hospital service to the subscribers only with hospitals duly conforming with the laws of the State of South Dakota, and approved for participation by the director; provided that the hospital service plan operated by such corporation shall also provide for hospital service to subscribers in the hospital chosen by the patient without regard to whether such hospital is a contracting hospital, and subject to the approval of the director, and at the same rate as provided in the contract of the corporation for care in other than contracting hospitals in case of emergency or expediency, and subject to the approval of the director.