2016-11-15T11:00:56-06:00 2015-12-31 346565596 Ernst & Young LLP 560 Mission St Suite 1600 San Francisco CA 94105 990 2015-01-01 770431902 Cottage Health COTT 8053249903 PO Box 689 Santa Barbara CA 93102 Brett Tande Senior Vice President and CFO 2016-08-05 false Eva Nitta P01286320 4158948000 2015 2017-02-10 21:41:12Z Ronald Werft PO Box 689 Santa Barbara CA 93102 103362765 false X www.cottagehealthsystem.org X 1996 CA 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. 18 16 281 0 99815 4991 0 86493764 102174128 1251180 129735 1490060 490824 89235004 102794687 0 0 32839225 35163069 0 0 39817175 50728967 72656400 85892036 16578604 16902651 38568310 68708975 26197079 44055390 12371231 24653585 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, and Goleta Valley Professional Buildings, Inc. false false 47158349 102664917 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. 47158349 true false false false false false false false false false true false false false 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 121 0 true 281 true true true false false false false false false false false false X 18 16 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 8055697294 PO Box 689 Santa Barbara CA 93102 Robert E M Nourse Chair 10.0 10.0 X X 0 0 0 P Steven Ainsley Vice Chair 2.3 2.7 X X 0 0 0 Robert C Nakasone Vice Chair 2.3 2.7 X X 0 0 0 Marshall (Chip) Turner Jr Vice Chair 2.3 2.7 X X 0 0 0 Alex Koper MD Secretary 2.3 2.7 X X 0 0 0 Gregory F Faulkner Vice Chair 2.3 2.7 X 0 0 0 Edward S Bentley MD Committee Chair 2.3 2.7 X 0 0 0 Jon Clark Committee Chair 2.3 2.7 X 0 0 0 Judith Hopkinson Committee Chair 2.3 2.7 X 0 0 0 Fred Lukas Committee Chair 2.3 2.7 X 0 0 0 Margaret Baker Director 1.9 2.1 X 0 0 0 Lori Gaskin PhD Director 1.9 2.1 X 0 0 0 Dorothy Largay Director 1.9 2.1 X 0 0 0 Harry McMahon Director 1.9 2.1 X 0 0 0 Gretchen Milligan Director 1.9 2.1 X 0 0 0 Gamble Parks Director 1.9 2.1 X 0 0 0 Elliot Prager MD Director 1.9 2.1 X 0 0 0 Thomas Watson MD Director 1.9 2.1 X 0 7000 0 Ronald Werft President & CEO 30.0 30.0 X 1212091 0 37675 Joan Bricher CFO 25.0 25.0 X 686061 0 31045 Steven Fellows COO 14.9 35.1 X 753412 0 37675 Julie Artoux Asst Secretary 25.0 25.0 X 130529 0 14955 Edmund Wroblewski MD VP Medical Affairs 40.0 0 X 611525 0 31045 Alberto Kywi VP ISD/CIO 40.0 0.0 X 516610 0 37938 Karen Jones Grandidier VP Finance 40.0 0 X 463442 0 62946 Patrice Ryan VP Human Resource 40.0 0 X 437594 0 51199 Herbert Geary VP Pt Care Svcs, CNO 40.0 0.0 X 431144 0 53678 Afshin Fatholahi VP Support Services 40.0 0.0 X 418767 0 31045 Lisa Moore VP Clinical Services 40.0 0.0 X 416524 0 59703 Ronald Biscaro VP Project Management 40.0 0 X 378699 0 59049 David Dietrich VP Advancement 40.0 0 X 334375 0 21753 Sharon Lutz PhD VP Quality Sup Svcs 40.0 0 X 306064 0 53865 Kathryn Bazylewicz VP Marketing 40.0 0 X 287919 0 54301 Paul Erickson MD Dir Psych Services 40.0 0 X 287307 12500 39120 Kristin Tufvesson Dir Financial Svcs 40.0 0 X 272611 0 38133 7944673 19500 715125 113 false true false RIGHT SOURCING INC 999 STEWART AVE SUITE 100 BETHPAGE NY 11714 CONTRACT LABOR 9889829 EPIC SYSTEMS CORPORATION 1979 MILKY WAY VERONA WI 53593 IT CONSULTING 5185333 TECHSTRATA LLC 575 ANTON BLVD STE 300 COSTA MESA CA 92626 IT CONSULTING 2463366 CIO SOLUTIONS LP 150 CASTILLIAN DRIVE GOLETA CA 93117 IT CONSULTING 2279991 SAGEWOOD SYSTEMS 2320 BATH STREET SUITE 305 SANTA BARBARA CA 93101 IT CONSULTING 2019489 55 0 ADMIN REV FROM TAX EXEMPT AFFIL 561000 102198614 102198614 COSMG income (loss) 900099 -24486 -24486 0 0 0 0 102174128 137593 137593 0 0 560220 568078 -7858 0 -7858 -7858 Rebates 900099 301455 301455 VRE Admin Revenue 900099 99815 99815 Human Resource Revenues 900099 89554 89554 0 0 0 0 490824 102794687 102565137 99815 129735 6964350 6964350 13948161 7405308 6542853 6403938 5174974 1228964 6073033 3720331 2352702 1773587 458916 1314671 1854985 1854985 1082127 1082127 37273 37273 5966078 2461061 3505017 0 1805626 1805626 3264578 1733465 1531113 25645345 20286201 5359144 600089 407372 192717 2177409 233945 1943464 447942 39401 408541 4307987 3457159 850828 2558763 1637609 921154 Dues and Subscriptions 594012 139874 454138 Education & Training 94865 94865 Settlements 136080 136080 UBI tax 111958 111958 43850 2733 41117 0 85892036 47158349 38733687 0 2756545 1423103 433413 5403263 600000 0 24167177 5677270 6079281 75291475 38920897 12350121 36370578 6458156 1551479 0 3938063 68836 38568310 68708975 6444156 10329414 0 0 19752923 33725976 26197079 44055390 X 12371231 24653585 12371231 24653585 38568310 68708975 X 16902651 -218926 -4401371 X false true X true false 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 952224265 3 true 0 0 3 0 0 true false false false false true 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 and Santa Ynez Cottage Hospital by providing management, financial, information systems, facilities planning and other services to the hospitals. Schedule A, Part IV, Section A, Line 6 Support to other supported orgs The Cottage Health management team provides management services to Villa Riviera Real Estate Company. 772706 199951 572755 46321186 38720946 7600240 28197583 28197583 36370578 Due to Affiliates 4616197 Minimum Pension Liability 12799455 SERP and Retirement Plan 1675141 Split Dollar Life Liability 14115473 Group Health Reserve 519710 33725976 X Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote Cottage 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. Cottage has recognized no interest or penalties related to uncertain tax positions. Cottage 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 2011. X true true X X X X false true false false false false false false false Ronald Werft President & CEO 892108 0 284164 0 35819 0 13250 0 24425 0 1249766 0 0 0 Joan Bricher CFO 499644 0 134130 0 52287 0 13250 0 17795 0 717106 0 0 0 Steven Fellows COO 544854 0 153828 0 54730 0 13250 0 24425 0 791087 0 0 0 Edmund Wroblewski MD VP Medical Affairs 463617 0 86208 0 61700 0 13250 0 17795 0 642570 0 0 0 Alberto Kywi VP ISD/CIO 344153 0 60834 0 111623 0 13250 0 24688 0 554548 0 0 0 Karen Jones Grandidier VP Finance 342612 0 70657 0 50173 0 37256 0 25690 0 526388 0 26240 0 Patrice Ryan VP Human Resource 336758 0 63832 0 37004 0 35602 0 15597 0 488793 0 23661 0 Herbert Geary VP Pt Care Svcs, CNO 332952 0 57410 0 40782 0 35883 0 17795 0 484822 0 23944 0 Afshin Fatholahi VP Support Services 258986 0 49395 0 110386 0 13250 0 17795 0 449812 0 78059 0 Lisa Moore VP Clinical Services 317685 0 53882 0 44957 0 35278 0 24425 0 476227 0 23047 0 Ronald Biscaro VP Project Management 300849 0 50642 0 27208 0 33359 0 25690 0 437748 0 20666 0 David Dietrich VP Advancement 263754 0 47250 0 23371 0 13250 0 8503 0 356128 0 0 0 Sharon Lutz PhD VP Quality Sup Svcs 243275 0 39484 0 23305 0 29440 0 24425 0 359929 0 16458 0 Kathryn Bazylewicz VP Marketing 261159 0 25500 0 1260 0 29549 0 24752 0 342220 0 0 0 Paul Erickson MD Dir Psych Services 283493 12500 0 0 3814 0 13250 0 25870 0 326427 12500 0 0 Kristin Tufvesson Dir Financial Svcs 231697 0 17160 0 23754 0 12443 0 25690 0 310744 0 0 0 Schedule J, Part II Beginning 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. 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 4b Supplemental nonqualified retirement plan COTTAGE HEALTH 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 ORGANIZATION 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 YEAR'S DEFERRED COMPENSATION INCLUDES RECOGNITION OF PAST SERVICE. THE AMOUNTS ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. ANY DEFERRED CONTRIBUTIONS TO THIS PLAN WILL BE REPORTED AGAIN AS REPORTABLE COMPENSATION IN THE YEAR PAID. In 2015, recipients of payouts from the 457(F) plan were: Ronald Biscaro ($20,666), David Dietrich ($17,679), Afshin Fatholahi ($95,073), Herbert Geary ($23,944), Karen Jones Grandidier ($26,240), Alberto Kywi ($24,344), Sharon Lutz ($16,458) Lisa Moore ($23,047), Patrice Ryan ($23,661), Edmund Wroblewski ($32,563). JOAN BRICHER CFO DEFERRED COMPENSATION X 5627962 5796801 false true true RONALD WERFT CEO DEFERRED COMPENSATION X 14589759 14974689 false true true STEVEN FELLOWS COO DEFERRED COMPENSATION X 3308400 3395687 false true true KATHRYN BAZLEWICZ VICE PRESIDENT HOME LOAN X 300000 300000 false true true ELIZABETH MAJESTIC VICE PRESIDENT HOME LOAN X 300000 300000 false true true 24767177 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 the VP Finance, CFO and 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. 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 Health System 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 Directors have a duty to: 1.) discharge their duties to benefit 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 has 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. For this fiscal year, the review occurred on April 6, 2015. 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, articles of incorporation and conflict of interest policies are not available to the public. Form 990, Part XI, Line 9 Other changes in net assets or fund balances CHANGE IN PENSION LIABILITY - -4401371; 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 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 N/A 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 false false false false true false true true true true true true Santa Barbara Cottage Hospital L 18244069 accrual Santa Barbara Cottage Hospital O 2957802 accrual Santa Barbara Cottage Hospital P 21798495 accrual Santa Barbara Cottage Hospital Q 73018973 accrual Santa Barbara Cottage Hospital R 9632456 accrual Santa Barbara Cottage Hospital S 7014970 accrual Goleta Valley Cottage Hospital L 2268478 accrual Goleta Valley Cottage Hospital O 169045 accrual Goleta Valley Cottage Hospital P 2259353 accrual Goleta Valley Cottage Hospital Q 10385489 accrual Goleta Valley Cottage Hospital R 106711 accrual Santa Ynez Valley Cottage Hospital L 495813 accrual Santa Ynez Valley Cottage Hospital Q 1468755 accrual Goleta Valley Professional Building O 90605 accrual Goleta Valley Professional Building R 172681 accrual SB Cottage Hosp Foundation Q 2270683 accrual