2010 — A Year in Review

Cottage Health System
Our Not-for-Profit Mission

Cottage Health System is a private, not-for-profit community organization. Our sole purpose is to provide outstanding medical care to the communities we serve.

Together our hospitals—in Santa Barbara, Goleta, and the Santa Ynez Valley—provide a range and quality of services rarely found in communities of our size, and are consistently among the most efficiently managed healthcare providers in California.

A volunteer Board of Directors from the community oversees the operations and fiscal management of the system. These women and men serve without remuneration of any kind and are, in fact, a significant source of philanthropic financial support for our hospitals.

Because there is no Santa Barbara County public hospital, Cottage Health System also provides the great majority of acute care to our region’s financially vulnerable population, for which reimbursement does not cover our costs. These programs go beyond the legal requirements for providing emergency care. An example of this is our growing commitment to provide medically necessary but non-emergent services to patients who can’t afford to pay for the hospital attention they need. This Community Service Program last year provided free or reduced-cost care to 255 patients. We thank not only the volunteer physicians who review these needed cases but also those who provide their services to these patients, again at no or reduced charges. Moreover, physicians in our graduate medical education program help staff the ambulatory care facility at the Santa Barbara County Public Health Department, providing a valuable service to some of the more vulnerable members of our community.

Cottage By The Numbers — 2010

-	Licensed beds	540
-	Patients admitted	20,560
	• Medicare (including HMOs for seniors)	43.8%
	• HMO/PPO	37.9%
	• Medi-Cal	13.8%
	• Charity and Self-Pay	4.5%
-	Days of inpatient care	101,127
-	Number of surgeries	14,383
-	Babies delivered	2,696
-	Emergency department visits	64,545
-	Outpatient visits (e.g., lab, X ray)	128,238
-	Employees (full-time equivalents)	2,696
-	Volunteers	834
-	Volunteer hours	112,729
-	Medical staff physicians	600
-	Physicians in residency programs	52

Financial Responsibility

Figures For January Through December, 2010 (In Millions)
-	Revenue	$ 554
-	Expenses	- 502
-	Operating Margin	= 52
-	Net Investment Income	+ 8
-	Total Available For Reinvestment	$ 60

Net revenues of $60 million were reinvested in our hospitals for technology, equipment, construction, and community benefit enhancements:
-	New hospital construction and equipment	$ 40
-	Maintaining and enhancing state-of-the-art equipment	14
-	New technology, including electronic health information	4
-	Community program enhancements and increasing funds for charity care	2

In addition, thanks to The Campaign for Cottage Health System and the Santa Barbara Cottage Hospital Foundation, $55 million was transferred to Santa Barbara Cottage Hospital for new construction.

Cottage provides the majority of acute care to our region’s financially vulnerable population, and reimbursements do not cover the costs of this care.