Cottage Planning Replacement of Goleta Hospital

January 13, 2005 -- Offering renewed hope for the future of Goleta Valley Cottage Hospital and the healthcare needs of local residents, the not-for-profit Cottage Health System today announced that it is beginning plans for a seismic replacement of the 122-bed facility.

The Goleta hospital has seen increased inpatient, surgical and emergency department activity over the past year and a half--particularly since the closing of St. Francis Medical Center in June of 2003.

Recognizing the importance of assuring adequate bed capacity in the greater Santa Barbara area, and the need to broaden the vision of health care on the south and central coast, Cottage is embarking on a planning effort to determine what services to locate at the Goleta campus. The project is required by the unfunded State seismic mandate, SB 1953, which calls for all acute-care hospitals to meet strict deadlines for retrofitting or rebuilding their facilities.

Already, a $400 million phased replacement project, currently undergoing City review, is planned for Santa Barbara Cottage Hospital, with groundbreaking anticipated for this spring. At the 22-bed Santa Ynez Valley Cottage Hospital, the decision has been made to retrofit the one-story facility at a cost of about $1 million, with work scheduled to get under way this year.

The retrofitting option for Goleta Valley Cottage Hospital has been eliminated, Cottage president and CEO Ron Werft announced. Because of soil conditions and other construction complications in the two-level structure, the original estimate of $18 million has spiraled in recent months to more than $45 million. Moreover, retrofitted hospitals must eventually be rebuilt to new 2030 standards.

What will now be examined carefully by the Cottage board, hospital management, financial analysts and strategic planners are replacement plans for the Goleta hospital, including a close look at which services should be offered in the context of a system-wide approach to clinical programs.

"This is positive news for all our communities," Cottage CEO Ron Werft said Wednesday of the planning effort. He added that, "Our efforts will now focus on the scope of services to be offered at each of the South Coast hospitals. Our goal is to meet the healthcare needs of our communities as we upgrade the facilities at each of our three hospitals. I truly believe this effort will focus our energies and result in strengthening our local healthcare system."

Werft estimated that the replacement project at Goleta would cost between $55 million and $60 million. Architect selection will begin immediately.

In order to be successful, Werft pointed out, the plan for GVCH must include a high level of physician support, support from the City of Goleta, the ability to manage rising construction costs, and financial support from the community.

"I am so encouraged by this approach," said Earl Armstrong, chair of the GVCH Foundation, "and very much looking forward to this community-wide analysis of health care. It's an unprecedented opportunity for all of us to rally behind our hospitals and demonstrate just how important it is to have quality healthcare services available to us at all times."

Goleta Valley Community Hospital was founded in 1966 to meet the needs of the growing community of Goleta. Following several years of financial loss and after examining a number of alternatives, the Goleta hospital board initially approached Santa Barbara Cottage Hospital in 1994 regarding a possible affiliation between the two not-for-profit organizations. The affiliation ultimately occurred in 1996 with the formation of the Cottage Health System; it also included Santa Ynez Valley Hospital which had affiliated with Cottage the previous year.

Today, Goleta Valley Cottage Hospital employs 260 people, admits 1,800 patients a year, treats 17,000 people in its emergency department, and offers a range of inpatient and outpatient medical and surgical services.

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