2014-11-14T14:16:59-07:00 2013-12-31 990 2013-01-01 770431902 COTTAGE HEALTH SYSTEM COTT 8056827111 PO Box 689 Santa Barbara CA 93102 Joan Bricher Senior Vice President and CFO 8058798752 2014-11-14 2013 2015-11-30 17:44:51Z Ronald Werft same as above Santa Barbara CA 93102 61908951 0 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. 17 13 180 0 108930 2696 0 0 59550886 59950708 0 322333 455132 293791 60006018 60566832 0 0 0 0 29636765 30557959 0 0 0 30361133 29708665 59997898 60266624 8120 300208 16816750 26265050 21701899 25283986 -4885149 981064 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. 0 0 50014313 0 60135569 Cottage Health System 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. 0 0 0 50014313 1 0 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 92 0 1 180 1 1 1 0 0 0 0 0 0 0 0 0 X 17 13 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X Karen Jones Grandidier 8055697294 PO Box 689 Santa Barbara CA 93102 Judith Hopkinson Director 2 2 X 0 0 0 Gregory Faulkner Director 2 2 X 0 0 0 Elliot Prager MD Director 2 2 X 0 0 0 Lori Gaskin PhD Director 2 2 X 0 0 0 Dorothy Largay PhD Director 2 2 X 0 0 0 Edward Bentley MD Director 2 2 X 0 0 0 John Romo Committee Chair 2.5 2.5 X 0 0 0 Jon Clark Committee Chair 2.5 2.5 X 0 0 0 Thomas Watson MD Committee Chair 2.5 2.5 X 0 13065 0 Charles A Jackson Committee Chair (partial year) 2.5 2.5 X 0 0 0 Gretchen Milligan Committee Chair 2.5 2.5 X 0 0 0 Fred Lukas Committee Chair 2.5 2.5 X 0 0 0 Margaret Baker Committee Chair 2.5 2.5 X 0 0 0 Alex Koper MD Secretary 2.5 2.5 X X 0 42252 0 Marshall Turner Jr Vice Chair 2.5 2.5 X X 0 0 0 Robert Nakasone Vice Chair 2.5 2.5 X X 0 0 0 P Steven Ainsley Vice Chair 2.5 2.5 X X 0 0 0 Robert Nourse Board Chair 10 10 X X 0 0 0 Ronald C Werft CEO 30 30 X 1102878 0 718319 Steven A Fellows COO 15 35 X 632925 0 198617 Joan F Bricher CFO 25 25 X 564018 0 211993 Julie J Artoux Assistant Secretary 25 25 X 121989 0 27354 Edmund M Wroblewski MD VP Medical Affairs & CMO 40 0 X 546740 0 59795 Alberto J Kywi VP ISD & CIO 40 0 X 407671 0 52123 Karen Jones Grandidier VP Finance 40 0 X 370952 0 52229 Ronald M Biscaro VP Housing & Real Estate Development 40 0 X 306509 0 48692 Sharon Lutz VP Quality Sup Svcs 40 0 X 244122 0 44365 Afshin Fatholahi VP Support Services 40 0 X 279554 0 45649 Herbert J Geary VP Pt Care Svcs & CNO 40 0 X 339964 0 49885 Lisa M Moore VP Clinical Services 40 0 X 337648 0 49845 Patrice P Ryan VP Human Resource 40 0 X 334110 0 49369 Paul J Erickson MD Director Psych Services 40 0 X 304040 0 30913 Kristin L Tufvesson Director Financial Svcs 40 0 X 250825 0 30913 David T Dietrich VP Advancement 40 0 X 234787 0 26844 Laura Davidson Director Clin Informatics 40 0 X 212460 0 29286 Leslie J Stephens Sr Sys Supp Analyst 40 0 X 147032 0 25106 Christopher B Ponce VP Advancement (Former) 40 0 X 373335 0 29668 7111559 55317 1780965 66 1 1 0 CIO SOLUTIONS LP 150 CASTILLIAN DRIVE GOLETA CA 93117 IT CONSULTING 1615851 SAGEWOOD SYSTEMS 2320 BATH STREET SUITE 305 SANTA BARBARA CA 93105 IT CONSULTING 1544580 CORESOURCE INC PO BOX 416266 BOSTON MA 022416266 COMPUTER SERVICES 1425804 TECHSTRATA LLC 575 ANTON BLVD STE 300 COSTA MESA CA 92626 IT CONSULTING 1350733 PIVOT POINT CONSULTING LLC 15400 SE 30TH PLACE BELLEVUE WA 98007 IT CONSULTING 843088 35 0 ADMIN REV FROM TAX EXEMPT AFFILIATES 900099 59950708 59950708 0 0 0 0 0 0 59950708 128112 0 0 128112 0 0 0 0 0 0 0 0 0 0 1536340 0 1342119 0 194221 0 194221 0 0 194221 VRE Administration Revenue 900099 108930 0 108930 0 HR Revenue 900099 91945 91945 0 0 Discounts and Rebates 900099 23675 23675 0 0 69241 69241 0 0 293791 60566832 60135569 108930 322333 7600318 6460271 1140047 0 0 0 11227707 9450283 1777424 0 2077733 1766073 311660 0 8625430 7381794 1243636 0 1026771 849138 177633 0 382122 382122 0 511581 511581 0 135344 135344 0 10700 10700 0 3827545 3119029 708516 724667 613329 111338 2564110 2003643 560467 15721419 13725282 1996137 113960 113960 131697 109772 21925 84384 67519 16865 2430408 2061672 368736 2356143 1926212 429931 Dues and Subscriptions 371501 290561 80940 0 Equipment Maintenance 38841 33015 5826 0 Education and Training 47229 40145 7084 0 Administrative Settlement 143163 0 143163 0 113851 2615 111236 60266624 50014313 10252311 0 5256397 4489506 0 397727 0 0 0 0 0 0 3722728 4273120 40410436 32157829 7019492 8252607 0 5313003 0 2439683 0 0 818133 1099404 16816750 26265050 5672609 5806376 16029290 19477610 21701899 25283986 X -4885149 981064 0 0 0 0 -4885149 981064 16816750 26265050 X 300208 404653 0 0 0 5161352 X 0 1 X 1 0 X X X X 0 0 0 Santa Barbara Cottage Hospital 951644629 3 1 1 1 0 Goleta Valley Cottage Hospital 952413596 3 1 1 1 0 Santa Ynez Valley Cottage Hospital Inc 952224265 3 1 1 1 0 3 0 0 0 0 0 0 0 0 0 1 135344 135344 0 Schedule C, Part II-B, Line 1 Membership fees paid to California Hospital Association used for lobbying purposes. 0 0 0 0 0 0 0 0 284831 98481 186350 0 39913573 32059348 7854225 0 212032 0 212032 8252607 2439683 F 2439683 17111 Group Health Reserve 189600 Minimum Pension Liability 573779 SERP and Retirement Plan 12426707 Due to Affiliates 6270413 19477610 X Schedule D, Part X, Line 2 The System completed an analysis of its tax positions, in accordance with ASC 740, Income Taxes, and determined that there are no uncertain tax positions taken or expected to be taken. The System 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 2009. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 Ronald C Werft CEO 810869 0 279660 0 12349 0 700565 0 17754 0 1821197 0 0 0 Steven A Fellows COO 480586 0 141176 0 11163 0 180863 0 17754 0 831542 0 0 0 Joan F Bricher CFO 449279 0 107214 0 7524 0 194115 0 17878 0 776010 0 0 0 Edmund M Wroblewski MD VP Medical Affairs & CMO 432067 0 77565 0 37108 0 42063 0 17732 0 606535 0 29584 0 Alberto J Kywi VP ISD & CIO 307389 0 46876 0 53407 0 33460 0 18663 0 459795 0 20343 0 Karen Jones Grandidier VP Finance 308937 0 57041 0 4973 0 33567 0 18663 0 423181 0 0 0 Ronald M Biscaro VP Housing & Real Estate Development 257666 0 37982 0 10861 0 30029 0 18663 0 355201 0 0 0 Sharon Lutz VP Quality Sup Svcs 208127 0 33067 0 2928 0 26611 0 17754 0 288487 0 0 0 Afshin Fatholahi VP Support Services 227055 0 42963 0 9536 0 27917 0 17732 0 325203 0 0 0 Herbert J Geary VP Pt Care Svcs & CNO 288443 0 38833 0 12688 0 32153 0 17732 0 389849 0 0 0 Lisa M Moore VP Clinical Services 288679 0 45427 0 3542 0 32169 0 17676 0 387493 0 0 0 Christopher B Ponce VP Advancement 239859 0 0 0 133475 0 12250 0 17418 0 403002 0 0 0 Patrice P Ryan VP Human Resource 285574 0 44565 0 3971 0 31955 0 17414 0 383479 0 0 0 Paul J Erickson MD Director Psych Services 300364 0 160 0 3516 0 12250 0 18663 0 334953 0 0 0 Kristin L Tufvesson Director Financial Svcs 210728 0 18661 0 21436 0 12250 0 18663 0 281738 0 0 0 David T Dietrich VP Advancement 214816 0 16964 0 3007 0 11739 0 15104 0 261630 0 0 0 Laura Davidson Director Clin Informatics 198511 0 13297 0 652 0 10623 0 18663 0 241746 0 0 0 Leslie J Stephens Sr Sys Supp Analyst 143494 0 158 0 3381 0 7352 0 17754 0 172139 0 0 0 Schedule J, Part I, Line 1a 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 3 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 executives 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 executives. Additional details found in the narrative for Schedule O, Part VI, Line 15. Schedule J, Part I, Line 4 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 2013 include Dr. Edmund Wroblewski ($29,584) and Alberto Kywi ($20,343). Mullen & Henzel Board member Greg Faulkner is a partner 175682 Attorney Fees 0 Form 990, Part VI, Section B, Line 11b Form 990 is prepared under the direction of the Vice President of Finance and CFO. Form 990 is reviewed by 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, Section B, Line 12c 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 System, 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 System. The Cottage Health System Directors have a duty to: 1.) discharge their duties to benefit the Cottage Health System and not the Directors personally 2.) disclose situations with the potential for conflict of interest with the vision and mission of Cottage Health System 3.) refrain from discussing confidential Cottage Health System business with others. Each Board member will annually complete the Cottage Health System 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 for items to be discussed at a Board meeting. If there are any material financial or personal interests a Board member/family member may have in a Board decision, the Director or Officer will disclose this to the Committee Chair for items to be discussed at Board Committees, before the Board reviews the transaction 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's 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 System 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, Section B, Line 15 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, Section C, Line 19 Tax filings and Audited Financial Statements are available upon request from the CFO. The bylaws and conflict of interest policies are not available to the public. Form 990, Part XI, Line 9 Changes in Pension Liability $5,161,352 Santa Barbara Cottage Hospital PO Box 689 Santa Barbara CA 93102 951644629 Hospital CA 501(c)(3) 3 Cottage Health System 1 Goleta Valley Cottage Hospital PO Box 689 Santa Barbara CA 93102 952413596 Hospital CA 501(c)(3) 3 Cottage Health System 1 Santa Ynez Valley Cottage Hospital Inc PO Box 689 Santa Barbara CA 93102 952224265 Hospital CA 501(c)(3) 3 Cottage Health System 1 Santa Barbara Cottage Hospital Foundation PO Box 689 Santa Barbara CA 93102 953802238 Fundraising CA 501(c)(3) 7 Santa Barbara Cottage Hospital 0 Goleta Valley Professional Buildings Inc PO Box 689 Santa Barbara CA 93102 770004202 Medical Professional Building CA 501(c)(3) 11b-II Cottage Health System 1 Rio Bravo Energia I Investments Holdings LP 89 Nexus Way Camana Bay Grand Cayman KY CJ 1-9007 999999999 Investment CA SB Cottage Hosp Fndtn 0 0 0 0 Villa Riviera Real Estate Company PO Box 689 Santa Barbara CA 93102 272996284 Workforce housing developer CA SBCHFndtn C 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 0 1 Santa Barbara Cottage Hospital l 49379665 accrual Santa Barbara Cottage Hospital o 352636 accrual Santa Barbara Cottage Hospital p 11283477 accrual Santa Barbara Cottage Hospital q 2495862 accrual Santa Barbara Cottage Hospital s 10546745 accrual Goleta Valley Cottage Hospital l 6019707 accrual Goleta Valley Cottage Hospital o 133416 accrual Goleta Valley Cottage Hospital p 65291 accrual Goleta Valley Cottage Hospital q 195540 accrual Santa Ynez Valley Cottage Hospital Inc l 1130173 accrual Santa Ynez Valley Cottage Hospital Inc q 88755 accrual Santa Barbara Cottage Hospital Foundation l 2462729 accrual Santa Barbara Cottage Hospital Foundation q 115428 accrual Villa Riviera Real Estate Company l 96876 accrual