Rehabilitation Institute at Santa Barbara
Joins Santa Barbara Cottage Hospital

September 20, 2007

FOR IMMEDIATE RELEASE

Santa Barbara – In a move designed to preserve inpatient and outpatient rehabilitation services for the greater Central Coast, the not-for-profit Cottage Health System and Rehabilitation Institute at Santa Barbara (RISB) have reached agreement on the future provision of these critical services.

Earlier this year, RISB had approached Cottage to discuss possible options for its future given the growing financial challenges of operating an independent acute-care rehabilitation hospital (see news release).  Reductions in Medicare and third-party payments had resulted in significant operating losses for RISB.  The two organizations agreed to explore the options, signing a Letter of Intent on April 30.  The past several months have been devoted to careful analysis of overhead costs, staffing, and the final structure of any possible agreement.

Under the new agreement, which has been endorsed by the RISB Board of Directors and the Cottage Board, and allowed by the State Attorney General to proceed, the 38-bed freestanding facility on De la Vina Street will become a program of Santa Barbara Cottage Hospital (SBCH). 

In order to continue these vital services, Cottage has hired 156 of the staff at RISB.  Other staff  have been offered the opportunity to apply for existing open positions throughout Cottage Health System.

“It is the priority of RISB’s Board to preserve the excellent care and outcomes in rehabilitation,” emphasized Michael Focht, chair of the RISB Board of directors.  He added, “Patient outcomes have consistently exceeded national standards.  We are grateful that Cottage is able to continue these services for patients from the Central Coast” 

“We have always valued the tremendous work performed by the medical rehabilitation team of physicians, therapists, specialized nurses, psychologists and neuropsychologists at the Rehabilitation Institute,” says Cottage Health System President and CEO Ron Werft.  “We are very pleased to be able to continue these important services in our community.”

CHS Board Chair J. Robert Andrews agrees.  “Cottage believes it will be able to provide these services in a high quality manner with economies of scale and reduced overhead expense by bringing rehabilitation services and programs into the Cottage governance and management structure.  We’ve witnessed that in our own communities during the last decade.  In order to survive financially, the Santa Ynez and Goleta hospitals also saw the need to approach Cottage and consider pooling resources.  Today, both facilities are operating with a positive bottom line.” 

A new RISB Foundation, dedicated to supporting and sustaining rehabilitation services at SBCH, has been established.  Gifts that have been donated to RISB over the years and restricted to various rehabilitation services and endowment will be transferred to the RISB Foundation.

ABOUT REHABILITATION INSTITUTE AT SANTA BARBARA

Rehabilitation Institute at Santa Barbara is an independent, 38-bed, not-for-profit acute care medical rehabilitation hospital.  In fiscal year 2006, RISB’s inpatient programs served 653 patients.  The Tuohy Foundation Aquatic Center served 180 community members in therapeutic aquatic classes and/or physician-ordered aquatic therapy in its 92 degree pool.  Keck Center for Outpatient Services provided 7400 treatments.  RISB’s mission is best summarized in this phrase “Renewing hope and nurturing independence” – what RISB has been doing for over 50 years.  Visit www.risb.org.

ABOUT COTTAGE HEALTH SYSTEM

Cottage Health System, the parent organization of Santa Barbara Cottage Hospital and its associated Cottage Children’s Hospital, Santa Ynez Valley Cottage Hospital, and Goleta Valley Cottage Hospital, is guided by a volunteer board of directors from the greater Santa Barbara community.   Last year, the hospitals provided inpatient care for 21,000 people, treated 62,000 patients through their 24-hour emergency departments and helped deliver 2,700 newborns.  With a staff of more than 2,500, Cottage is the largest private employer in Santa Barbara County. Visit www.cottagehealthsystem.org.

Contact:
Suzanne Dalston
Vice President,
Development & Public Affairs
(805) 879-8980

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