2009 — A Year in Review
Cottage Health System is a Private,
Not-for-Profit Community Organization
What does that mean?
In essence, Cottage is owned by the communities it serves: there are no shareholders who benefit from a positive operating margin (the difference between revenue and expense), and our voluntary board of directors serves without compensation to guide the health system.
Not-for-profit means that 100% of any operating margin at Cottage will always be re-invested back into its hospitals for patient services, programs and building projects.
Did you know that last year more than a third of California hospitals lost money?
Remaining financially strong is essential for Cottage Health System if we are to continue providing the level of quality care and breadth of programs people have come to expect. In many instances, Cottage is the sole provider of specialty services across a broad geographic region, and remains committed to developing and strengthening programs not generally available in communities of our size.
Did you know there is no county hospital in Santa Barbara County?
Our local not-for-profit hospitals have basically operated as the county hospital since the San Antonio Road facility closed in 1978. As such, we provide emergency as well as inpatient medical and surgical care for the majority of welfare patients in the county, also helping to staff the ambulatory care facility at Santa Barbara County Public Health Department through physicians in our graduate medical education programs.
Cottage is receiving no federal, state or local funding for earthquake safety efforts
A positive bottom line becomes more essential than ever, requiring a careful eye on operating costs to minimize unnecessary expenses and maximize effective use of today's highly trained staff and progressive technology. Ongoing financial planning for the future remains critical, too, given that the costly state-mandated construction projects now under way at Cottage's facilities are estimated to top $800 million.
Our commitment to care for those in need remains solid. We will continue to plan and monitor our financial budgets with focused efficiency, aware that our core values of excellence, integrity and compassion are the driving force behind all we do.