2016-01-29T16:00:16-06:00 2014-12-31 990 2014-01-01 770431902 Cottage Health COTT 8056827111 PO Box 689 Santa Barbara CA 93102 Joan Bricher Senior Vice President and CFO 2016-01-29 false 2014 2016-04-25 22:37:26Z X Ronald Werft PO Box 689 Santa Barbara CA 93102 94746270 false X www.cottagehealthsystem.org X 1996 CA It is the mission of Cottage Health System to provide superior health care through a commitment to our Community and to our core values of excellence, integrity, and compassion. Cottage Health System is the sole corporate member for Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital and Santa Ynez Valley Cottage Hospital, Inc. 16 14 201 0 89231 4462 0 0 59950708 86493764 322333 1251180 293791 1490060 60566832 89235004 0 0 0 0 30557959 32839225 0 0 0 29708665 39817175 60266624 72656400 300208 16578604 26265050 38568310 25283986 26197079 981064 12371231 It is the mission of Cottage Health to provide superior health care through a commitment to our Community and to our core values of excellence, integrity, and compassion. Cottage Health is the sole corporate member for Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital and Santa Ynez Valley Cottage Hospital, Inc. false false 54308332 0 87894593 Cottage Health provided management and administrative services to Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital, Santa Ynez Valley Cottage Hospital and Goleta Valley Professional Buildings, Inc. 54308332 true false false true false false false false false true false false true true true false true false false false false false false false false false false false true false false false true false false false false false false false false false true true true false false true 80 0 true 201 true true true false false false false false false false false false X 16 14 false false false false false false false true true false false true true true true true true true true true true CA X Karen Jones Grandidier 8058798752 PO Box 689 Santa Barbara CA 93102 P Steven Ainsley Vice Chair 2.50 2.50 X X 0 0 0 Alex Koper MD Secretary 2.50 2.50 X X 0 0 0 Robert C Nakasone Vice Chair 2.50 2.50 X X 0 0 0 Robert E M Nourse Chair 10.00 10.00 X X 0 0 0 Marshall (Chip) Turner Jr Vice Chair 2.50 2.50 X X 0 0 0 Margaret Baker Committee Chair 2.50 2.50 X 0 0 0 Edward S Bentley MD Director 2.00 2.00 X 0 0 0 Jon Clark Committee Chair 2.50 2.50 X 0 0 0 Gregory F Faulkner Committee Chair 2.50 2.50 X 0 0 0 Lori Gaskin PhD Director 2.00 2.00 X 0 0 0 Judith Hopkinson Director 2.00 2.00 X 0 0 0 Dorothy Largay Director 2.00 2.00 X 0 0 0 Fred Lukas Committee Chair 2.50 2.50 X 0 0 0 Gretchen Milligan Committee Chair 2.50 2.50 X 0 0 0 Elliot Prager MD Director 2.00 2.00 X 0 0 0 Thomas Watson MD Committee Chair 2.50 2.50 X 0 12000 0 Joan Bricher CFO 25.00 25.00 X 658416 0 29038 Ronald Werft President & CEO 30.00 30.00 X 1178787 0 35313 Julie Artoux Asst Secretary 25.00 25.00 X 129967 0 20274 Steven Fellows COO 15.00 35.00 X 693871 0 35313 Patrice Ryan VP Human Resource 40.00 0 X 415975 0 48811 Ronald Biscaro VP Housing & Re Devlp 40.00 0 X 357084 0 55976 Afshin Fatholahi VP Support Services 40.00 0.00 X 305607 0 45264 Herbert Geary VP Pt Care Svcs, CNO 40.00 0.00 X 411529 0 50967 Karen Jones Grandidier VP Finance 40.00 0 X 437272 0 58487 Alberto Kywi VP ISD/CIO 40.00 0.00 X 499304 0 60265 Sharon Lutz PhD VP Quality Sup Svcs 40.00 0.00 X 296737 0 50948 Lisa Moore VP Clinical Services 40.00 0.00 X 389389 0 54753 Edmund Wroblewski MD VP Medical Affairs 40.00 0 X 638697 0 59604 Kathryn Bazylewicz VP Marketing 40.00 0 X 140381 0 23182 Laura Davidson Dir Clin Informatics 40.00 0 X 223863 0 35153 David Dietrich VP Advancement 40.00 0 X 288474 0 20274 Paul Erickson MD Dir Psych Services 40.00 0 X 292914 0 55490 Kristin Tufvesson Dir Financial Svcs 40.00 0 X 261526 0 36007 7619793 12000 775118 87 true true false SAGEWOOD SYSTEMS 2320 BATH STREET SUITE 305 SANTA BARBARA CA 93101 IT CONSULTING 1882100 CIO SOLUTIONS LP 150 CASTILLIAN DRIVE GOLETA CA 93117 IT CONSULTING 1734896 PAUL HASTINGS LLP 515 SOUTH FLOWER ST 25TH FLOOR LOS ANGELES CA 90071 LEGAL SERVICES 1637473 EPIC SYSTEMS CORPORATION 1979 MILKY WAY VERONA WI 53593 IT CONSULTING 1586978 TECHSTRATA LLC 575 ANTON BLVD STE 300 COSTA MESA CA 92626 IT CONSULTING 1483658 50 X 0 ADMIN REV FROM TAX EXEMPT AFFIL 900099 86512930 86512930 COSMG income (loss) 900099 -19166 -19166 0 0 0 0 86493764 88170 88170 0 0 6674276 5511266 1163010 0 1163010 1163010 VRE Administration Revenue 900099 89231 89231 Insurance Settlement 900099 845446 845446 Discounts and Rebates 900099 395603 395603 159780 159780 0 0 1490060 89235004 87894593 89231 1251180 7146769 6117634 1029135 12408935 9069229 3339706 2481374 2124056 357318 9659347 7738391 1920956 1142800 918873 223927 3467820 3467820 622516 622516 348288 348288 38181 0 38181 5557408 4282128 1275280 0 1047954 104958 942996 2708160 2041987 666173 19766260 16881555 2884705 310679 292423 18256 239310 199196 40114 72362 59733 12629 2705672 2225227 480445 2275142 1947522 327620 Dues and Subscriptions 117942 117942 Equipment Maintenance 108022 108022 Education and Training 308022 245137 62885 Administrative Settlement 53984 1044 52940 69453 59239 10214 0 72656400 54308332 18348068 0 4489506 2756545 397727 433413 0 5403263 0 0 4273120 5677270 47457346 35107225 8252607 12350121 5313003 6458156 2439683 1551479 0 1099404 3938063 26265050 38568310 5806376 6444156 0 0 19477610 19752923 25283986 26197079 X 981064 12371231 981064 12371231 26265050 38568310 X 16578604 -1123270 -4065167 X false true X true false X X X 3 SANTA BARBARA COTTAGE HOSPITAL 951644629 3 true 0 0 GOLETA VALLEY COTTAGE HOSPITAL 952413596 3 true 0 0 SANTA YNEZ VALLEY COTTAGE HOSPITAL INC 952224265 3 true 0 0 3 0 0 true false false false false false false false false false false false false false false true Schedule A, Part I, Line 11g Cottage Health supports Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital, Santa Ynez Cottage Hospital and Goleta Valley Professional Buildings, Inc by providing management, financial, information systems, facilities planning and other services to the hospitals. false false false false false false false false true 348288 348288 false Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY Membership fees paid to California Hospital Association used for lobbying purposes. 772707 141799 630908 44386632 34965426 9421206 2298007 2298007 12350121 Due From Affiliates 3046047 Other Assets 892016 3938063 Group Health Reserve 474462 Minimum Pension Liability 5024225 SERP and Retirement Plan 14254236 Due to Affiliates 0 19752923 X Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The System completed an analysis of its tax positions, in accordance with FASB ASC 740, Income Taxes, and determined that there are no uncertain tax positions taken. The System has recognized no interest or penalties related to uncertain tax positions. The System is subject to routine audits by the taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The System believes it is no longer subject to income tax examinations for years prior to 2010. X true true X X X X true true false false false false false false false Joan Bricher CFO 477338 0 115310 0 65768 0 12250 0 16788 0 687454 0 0 0 Ronald Werft President & CEO 856459 0 289913 0 32415 0 12250 0 23063 0 1214100 0 0 0 Julie Artoux Asst Secretary 115165 0 8991 0 5811 0 12250 0 8024 0 150241 0 0 0 Steven Fellows COO 522120 0 138263 0 33488 0 12250 0 23063 0 729184 0 0 0 Patrice Ryan VP Human Resource 316044 0 57185 0 42747 0 33886 0 14925 0 464786 0 23724 0 Ronald Biscaro VP Housing & Re Devlp 286393 0 45129 0 25562 0 31724 0 24251 0 413060 0 19508 0 Afshin Fatholahi VP Support Services 238345 0 44689 0 22573 0 28475 0 16788 0 350870 0 17451 0 Herbert Geary VP Pt Care Svcs, CNO 320995 0 53052 0 37482 0 34178 0 16788 0 462496 0 24574 0 Karen Jones Grandidier VP Finance 322784 0 52183 0 62305 0 34235 0 24251 0 495759 0 26117 0 Alberto Kywi VP ISD/CIO 348561 0 62920 0 87822 0 36014 0 24251 0 559569 0 66141 0 Sharon Lutz PhD VP Quality Sup Svcs 229797 0 43589 0 23351 0 27884 0 23063 0 347685 0 16610 0 Lisa Moore VP Clinical Services 284941 0 53593 0 50855 0 31689 0 23063 0 444141 0 24142 0 Edmund Wroblewski MD VP Medical Affairs 446170 0 89198 0 103329 0 42815 0 16788 0 698300 0 70351 0 Kathryn Bazylewicz VP Marketing 140042 0 0 0 339 0 16530 0 6652 0 163563 0 0 0 Laura Davidson Dir Clin Informatics 208534 0 13656 0 1673 0 10902 0 24251 0 259016 0 0 0 David Dietrich VP Advancement 254005 0 28925 0 5544 0 12250 0 8024 0 308747 0 0 0 Paul Erickson MD Dir Psych Services 273634 0 160 0 19120 0 31239 0 24251 0 348404 0 0 0 Kristin Tufvesson Dir Financial Svcs 222952 0 16310 0 22264 0 11755 0 24251 0 297533 0 0 0 Schedule J, Part II The supplemental executive retirement plan was replaced by split dollar agreements. Schedule J, Part I, Line 1a Health or social club dues or initiation fees Membership dues to a local county club are provided to the CEO. A percentage of the dues are allocated to the CEO, based on personal usage, and reported as taxable income. A membership to this club is used primarily as a space to hold various recognition and hospital-related functions. Schedule J, Part I, Line 4a Severance or change-of-control payment Severance payment for Christopher Ponce $135,417 Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan The System provides certain executives a supplemental retirement program. The program is defined as deferred compensation under the IRC Section 457(f). The annual contribution is 6.95% of base years salary with the contributions vesting five years from crediting date, or at age 62, or immediately in the event of death, disability, or involuntary termination without cause. The unvested account balances are assets of the System and are included in other assets and the accrued expense is included in pension liability and other in the accompanying consolidated balance sheets. The amounts reported in the current years deferred compensation includes recognition of past service. The amounts are subject to a substantial risk of forfeiture. Any amounts paid under this plan in the future will be reported again as reportable compensation in the year paid. Recipients of a payout from the 457(f) plan in 2014 include Dr. Edmund Wroblewski (70,351), Alberto Kywi (66,141), Karen Jones Grandidier(26,117), Patrice Ryan (23,724), Herb Geary (24,574), Lisa Moore ( 24,142), Ronald Biscaro (19,508), Sharon Lutz (16,610), Afshin Fatholahi (17,451). In 2014, one executive agreed to forego benefits under the executive's section 457(f) unfunded deferred compensation plan in consideration the organization's participation with the executive in a loan regime split dollar term loan arrangement described on Schedule O. Joan Bricher Chief Financial Officer deferred compensation X 5403263 5403263 false true true 5403263 Form 990, Part VI, Line 11b Review of form 990 by governing body Form 990 is prepared under the direction of the Vice President of Finance and CFO. Form 990 is reviewed by independent tax consultants prior to submitting to the Audit and Compliance Committee. All members of the Board receive a copy of the organization's form 990 for review prior to filing via the Board Portal. Form 990, Part VI, Line 12c Conflict of interest policy The purpose of the Conflict of Interest policy is to protect the interest of the Hospital when it contemplates entering into a transaction or arrangement that could benefit the private interest of a Director or Officer of Cottage Health, Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital, Santa Ynez Valley Cottage Hospital, Santa Barbara Cottage Hospital Foundation and Goleta Valley Professional Buildings, Inc., collectively known as Cottage Health. The Cottage Health Directors have a duty to: 1.) discharge their duties to benefit the Cottage Health and not the Directors personally 2.) disclose situations with the potential for conflict of interest with the vision and mission of Cottage Health 3.) refrain from discussing confidential Cottage Health business with others. Each Board member will annually complete the Cottage Health Directors Annual Conflict Disclosure Form. The Disclosure information will be reviewed annually by the Board Chair and the results reported to the full Board. Each Director or Officer will disclose to the Board Chair items to be discussed at a Board meeting. If there are any material financial or personal interests a Board member or family member may have in a Board decision, the Director or Officer will disclose this to the Committee Chair before the Board reviews the items and takes action. In general, an Officer who had disclosed a potential conflict should be excused from the decision making portion of the discussion and is prohibited from voting on a matter involving a potential conflict of interest. If the Board has reasonable cause to believe that a Director or Officer failed to disclose a material financial interest or other potential material conflict of interest, the Board Chair shall inform the member of the basis for the belief and afford the member an opportunity to explain the alleged failure to disclose. After hearing the Director or Officer response and conducting any further necessary investigation, the Board determines if the Director or Officer failed to disclose a material financial or other potential material conflict of interest. The Board Chair shall take appropriate corrective action. Committee Chairs who address conflict of interest situations with a Board Committee member are responsible for reporting such situations to the Board Chair. Key employees are treated as other employees of Cottage Health and sign an annual conflict of interest form. These forms are reviewed by Compliance and any issues are brought to the Chief Compliance Officer. Form 990, Part VI, Line 15a Process to establish compensation of top management official On an annual basis the Executive Compensation Committee (ECC) of the Board of Directors meets to determine appropriate compensation for executives, including the CEO, COO, CFO, and vice presidents. All members of the ECC are independent members of the Board of Directors. The ECC engages an independent consultant to prepare comparative compensation reports for each position. The executive's individual performance will also be considered when determining compensation. The ECC recommends compensation for the executives to the full Board for approval. This process takes place annually for all employed officers and key employees. Form 990, Part VI, Line 15b Process to establish compensation of other employees The process described in line 15a, above, takes place annually for all employed officers and key employees. Form 990, Part VI, Line 19 Required documents available to the public Tax filings and Audited Financial Statements can be obtained upon request from the CFO. The bylaws and conflict of interest policies are not available to the public. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue All Other Revenue - Total Revenue: 159780, Related or Exempt Function Revenue: 159780, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Change in Pension Liability - -4065167; Schedule A line 3 & line 11 Reason for Public Charity Status Schedule A was amended to correct an error made when the schedule was being completed. Part 1, Line 3 was checked by mistake in the return as originally filed. Line 11 is checked on this amended return reflecting that the organization is a Type II supporting organization. This is consistent with prior years' returns. In addition, This amended return also completes questions relating to the organization's status as a Type I supporting organization. Schedule J Part I line 4b Supplemental nonqualified retirement plan In 2014, the organization entered into a split-dollar term loan arrangement with an executive in exchange for that executive's agreement to forego benefits under a section 457(f) deferred compensation plan. The organization makes loans to the executive that are used towards premiums on life insurance policies. Interest on the loans accrues at a rate of interest in excess of the Applicable Federal Rate. Upon retirement, the executive will be permitted to borrow annually from the accumulated cash value to receive a target benefit as long as the policies retain enough cash value to repay the organization's loans and accrued interest from the death benefits. The loans are secured with the policies' cash value and death benefits and the organization shares in any excess death benefits under the policies. SANTA BARBARA COTTAGE HOSPITAL PO BOX 689 SANTA BARBARA CA 93102 951644629 HOSPITAL CA 501(c)(3 3 COTTAGE HEALTH true GOLETA VALLEY COTTAGE HOSPITAL PO BOX 689 SANTA BARBARA CA 93102 952413596 HOSPITAL CA 501(c)(3 3 COTTAGE HEALTH true SANTA YNEZ VALLEY COTTAGE HOSPITAL INC PO BOX 689 SANTA BARBARA CA 93102 952224265 HOSPITAL CA 501(c)(3 3 COTTAGE HEALTH true SANTA BARBARA COTTAGE HOSPITAL FOUNDATION PO BOX 689 SANTA BARBARA CA 93102 953802238 FUNDRAISING CA 501(c)(3 7 SANTA BARBARA COTTAGE HOSPITAL false GOLETA VALLEY PROFESSIONAL BUILDINGS INC PO BOX 689 SANTA BARBARA CA 93102 770004202 MEDICAL PROFESSIONAL BUILDING CA 501(c)(3 Type II COTTAGE HEALTH true false false false false false false false true false false false true true true true true true true true Goleta Valley Cottage Hospital L 8583096 accrual Goleta Valley Cottage Hospital O 140572 accrual Goleta Valley Cottage Hospital P 208116 accrual Goleta Valley Cottage Hospital Q 194951 accrual Santa Ynez Valley Cottage Hospital L 1723320 accrual Santa Ynez Valley Cottage Hospital Q 116980 accrual Goleta Valley Professional Building R 126780 accrual SB Cottage Hosp Foundation L 2196919 accrual SB Cottage Hosp Foundation P 51948 accrual SB Cottage Hosp Foundation Q 131743 accrual Santa Barbara Cottage Hospital H 242900 accrual Santa Barbara Cottage Hospital L 73080431 accrual Santa Barbara Cottage Hospital O 378299 accrual Santa Barbara Cottage Hospital P 18184435 accrual Santa Barbara Cottage Hospital Q 4383978 accrual Santa Barbara Cottage Hospital S 8194837 accrual