2013 — A Year in Review

Community Benefit


Cottage Health System is a not-for-profit organization which belongs to the community it serves. In 2013, through charity care, shortfalls in government reimbursement, and a broad array of community programs, we provided more than $144 million of services for the benefit of those most in need.



$12.5 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 for emergency services, while the Community Service Program provides free or reduced-cost care for non-emergent but medically necessary services. 



$117.6 Million
Government Underpayment
(unreimbursed cost of Medi-Cal, Medicare, and others)

Underpayment is the difference between the costs incurred and the reimbursement received for providing care to patients. Payment rates for Medicare and Medi-Cal are set by law. These rates are currently below the costs of providing care, resulting in underpayment to healthcare providers.


$4.4 Million
Health Education & Research

Cottage is a teaching hospital offering residencies in internal medicine, diagnostic radiology and general surgery. In addition, we provide ongoing financial support of nursing education through the Associate Degree Nurse program at Santa Barbara City College and the CSU Channel Islands Bachelor of Science in Nursing program. Our Reeves Medical Library at Santa Barbara Cottage Hospital is the largest medical library between LA and San Francisco — and the only one open to the public. 


$10.3 Million

Benefits for Broader Community and Vulnerable Populations

Cottage provides free and reduced-cost programs for community wellness. These programs include:


Parish nursing: staff work at congregations, homeless shelters, and mental health centers


Health fairs and clinics: Cancer Prevention Fair, Heart Health Fair, Mental Health Fair, Senior Expo, and flu shots


Classes: diabetes education, Healthy Balance weight management clinic, CPR, birth and parent education, and smoking cessation


Seminars: Five Wishes advance health care directives, Think First spinal cord and brain injury prevention, and safety helmet demonstrations


Support Groups: Mother’s Circle, Aphasia Recovery, Project Re-Entry, along with numerous support groups for caregivers of individuals with dementia, Huntington’s disease, stroke or traumatic brain injury


Adapted recreation and therapeutic activities: Aquatic wellness and exercise; adapted golf, cycling, and driving; and Junior Wheelchair Sports Camp


Funding and gifts-in-kind: grants, sponsorships, medical supplies, and below-market rate leases for nonprofits