Press Release
April 16, 2002
Cottage
Health System, Public Affairs
The Board of Directors of Cottage Health System has announced its
commitment to continuing acute-care services at Goleta Valley Cottage Hospital (GVCH),
despite a projected operating loss of $4 million for 2002.
In recent weeks, Cottage President and CEO Ron Werft has openly shared
concerns about financial challenges facing the 122-bed Goleta hospital, which
has been averaging 12 acute-care patients per night and losing more than
$330,000 a month in spite of concentrated efforts to enhance activity. In
addition to the financial losses, the hospital must decide on how it will meet
new seismic safety standards required for all acute-care hospitals in
California. Retrofitting costs are estimated at $19 million, with a total
rebuild of the Patterson Avenue facility running $80 million. Because these
requirements apply only to acute-care hospitals, one of the options being
considered at the Goleta campus was to concentrate services on the already busy
emergency department and outpatient services, and close inpatient beds.
In the next several months, increased efforts will be made to develop
relationships with physicians and physician groups, to educate the community
about the option of choosing GVCH for their hospital stay, to determine if there
are additional services which could be relocated to GVCH from Santa Barbara
Cottage Hospital, and to further improve governmental and other third-party
reimbursement to the hospital.
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Committee To Save Goleta Valley Hospital PO BOX 8552 GOLETA, CA 93118
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