An action against a physician, surgeon, dentist, hospital, sanitarium, registered nurse, licensed practical nurse, chiropractor, or other practitioner of the healing arts for malpractice, error, mistake or failure to cure, whether based upon contract or tort, can be commenced only within two years after the alleged malpractice, error, mistake or failure to cure shall have occurred, provided, a counterclaim may be pleaded as a defense to any action for services brought by a physician, surgeon, dentist, hospital, sanitarium, registered nurse, licensed practical nurse, chiropractor, or other practitioner of the healing arts after the limitation herein prescribed, notwithstanding it is barred by the provisions of this chapter, if it was the property of the party pleading it at the time it became barred and was not barred at the time the claim was sued or originated, but no judgment thereon except for costs can be rendered in favor of the party so pleading it.
Alberts v. Giebink, 299 N.W.2d 454 (S.D. 1980). (A physician is liable for negligence in failing to remove a Steinmann pin (inserted through the plaintiff's knee for purposes of traction in the treatment of his pelvic injury) though it was reasonably and medically necessary to remove it, or to obtain the plaintiff's informed consent to leave it in his knee. Under such circumstances, the action is not barred by passage of the statutory period, there being no final act or occurrence sufficient to commence the running of the statute. The court expressly declined to apply the discovery rule.)