2010 — A Year in Review

At Cottage Health System, our bottom line is the communities we serve

What does that mean?

As a not-for-profit organization which belongs to the communities it serves, Cottage has a mission and a responsibility to care for all who seek our help. Last year, through charity care, shortfalls in government reimbursement, and a broad array of community programs, we provided more than $104 million of services for the benefit of those most in need.

"The Board of Directors of the not-for-profit Cottage Health System is made up of members of the greater Santa Barbara community who serve without compensation to guide our hospitals in their mission to provide quality health care. It is our responsibility to uphold the dedication and legacy of the original founders. It was their dream 122 years ago to establish and build Santa Barbara's first hospital. It is our privilege to follow in their footsteps on behalf of our communities."

- Gretchen Milligan, Chair, Board of Directors, Cottage Health System

$10.0 Million Charity Care The Charity Care and Community Service Programs provide financial assistance to patients who meet income-eligibility requirements.   The Charity Care Program offers free or reduced-cost care to patients from our community for emergency services. In 2010, 1,700 patients received assistance through the Charity Care program.   The Community Service Program provides free or reduced-cost care for non-emergent but medically necessary services to patients. In 2010, 255 patients received assistance through the Community Service Program. This program has grown more than 25% in the last year.
$83.2 Million Government Underpayment Underpayment is the difference between the costs incurred and the reimbursement received for delivering care to patients. Payment rates for Medicare and Medi-Cal are set by law. These payment rates are currently set below the costs of providing care resulting in underpayment. Not-for-profit hospitals are required to care for Medicare and Medi-Cal beneficiaries, which account for the majority of all care provided.   $2.8 Million Health Education & Research We are committed to teaching. Cottage provides a medical residency program that allows medical residents to take on significant responsibilities for patient care while being supported by attending physicians.   Besides teaching directly, we provide ongoing financial support of nursing programs, as well as access to the hospital facility as a learning environment for future healthcare providers.   Reeves Medical Library is the largest medical library between Los Angeles and San Francisco - and the only one open to the public. Our librarians will help you find the information you need.   $1.5 Million Benefits for Broader Community To keep the community healthy, we provide a variety of free and reduced-cost screening and educational events including the Heart Health Fair, Mental Health Fair, Asthma Screening Fair, Family Fitness & Baby Fair, Cancer Prevention Fair, and flu shot clinics.   Other wellness education classes include smoking cessation, Healthy Balance weight management, heart smart lectures, and diabetes education.   $7.2 Million Benefits for Vulnerable Populations To ensure we are always ready to treat our community, we provide stipends for emergency and trauma physicians who are on-call.   Parish Nurses reach out into the community to serve those in need through churches, homeless shelters, and other local not-for-profits, and they provide service to more than 10,000 community members annually.   Besides our own programs, we provide funding to external organizations to provide their special services to people including the homeless and those with mental health issues.