Claire Dawson
Sansum Clinic and Cottage Health are independent non-profit healthcare organizations based in Santa Barbara, California. They have a long history of collaboration, with Cottage Hospital originally housing the Potter Metabolic Clinic, which later became the Sansum Clinic in 1920. In 2013, the two organizations announced a proposed merger that would have combined Cottage Health's three hospitals with Sansum's 24 outpatient clinics. However, after a four-year battle for federal regulatory approval, the merger was called off in 2017 due to concerns from the Federal Trade Commission about potential anti-competitive effects. Despite the merger's failure, Sansum Clinic and Cottage Health continue to work together and have expanded their network relationship to serve Medicare Advantage members.
| Characteristics | Values |
|---|---|
| Sansum Clinic founded | 1921 |
| Sansum Clinic type | Nonprofit medical foundation |
| Number of physicians affiliated with Sansum Clinic | 150+ |
| Number of patients served by Sansum Clinic | 130,000+ |
| Number of Sansum Clinic care facilities | 22-23 |
| Cottage Health founded | 1891 |
| Cottage Health type | Nonprofit hospital system |
| Number of hospitals under Cottage Health | 3 |
| Number of Cottage Health employees | 3,667 |
| Annual revenue of Cottage Health | $751 million |
| Cottage Health foundation assets | $288 million |
| Merger status | Called off in 2017 |
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What You'll Learn
- Sansum Clinic and Cottage Health signed a letter of intent to develop an integrated health system
- Sansum Clinic is the largest independent non-profit healthcare organisation between Los Angeles Basin and the San Francisco Bay Area
- Cottage Health System was formed in 1996 as the non-profit parent organisation of Santa Barbara Cottage Hospital
- The proposed merger between Cottage Health and Sansum Clinic was called off in 2017
- Cottage Hospital was designed to have a series of bungalows housing various medical departments
Sansum Clinic and Cottage Health signed a letter of intent to develop an integrated health system
Sansum Clinic and Cottage Health System ("CHS") have signed a letter of intent to develop an integrated health system. The transaction will bring together the three hospitals of Cottage Health System and Sansum Clinic's twenty-three ambulatory sites. This merger will improve the overall health of patients by providing the latest innovations in equipment, technology, procedures, and treatments.
Sansum Clinic, a non-profit community benefit entity, will serve as the medical foundation for the non-profit CHS. This merger will allow for better collaboration across the inpatient and outpatient care continuum, ultimately benefiting the patients and communities served by both organizations.
Under the terms of the letter of intent, CHS will become the corporate member of Sansum Clinic, bringing the clinic into the Cottage Health System. Cottage Health System is committed to assuring the availability of capital needed to expand health care services for the community through the work of Sansum Clinic and its affiliated physicians.
Sansum Clinic has been designated an Elite Member for Standards in Excellence by the California Association of Physician Groups. With more than 150 affiliated physicians, they provide a full spectrum of health care services, from primary care to more than 30 specialties. Serving more than 150,000 patients annually at 23 patient care facilities between Carpinteria and Santa Maria, Sansum Clinic is the only independent nonprofit medical foundation in California.
Cottage Health System, on the other hand, is a non-profit parent organization of Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital, and Santa Ynez Valley Cottage Hospital. Guided by a volunteer board of directors from the greater Santa Barbara community, Cottage Health System has been serving Central Coast residents for over a century. With specialties such as the Cottage Children's Medical Center, Level 1 Trauma Center, and the Heart & Vascular Center, Cottage Health System is dedicated to offering all residents access to quality healthcare.
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Sansum Clinic is the largest independent non-profit healthcare organisation between Los Angeles Basin and the San Francisco Bay Area
Sansum Clinic is the largest independent non-profit healthcare organisation between the Los Angeles Basin and the San Francisco Bay Area. It has been improving the overall health of its patients since 1921 by providing the latest innovations in equipment, technology, procedures, and treatments. With more than 220 affiliated physicians, Sansum Clinic serves more than 130,000 patients annually at its 22 patient care facilities in south Santa Barbara County.
Sansum Clinic has always been closely associated with Cottage Hospital, its neighbour in Santa Barbara. The two organisations have had a long-standing relationship, with Cottage Hospital being the city's sole inpatient provider and Sansum Clinic providing outpatient services. In 2013, the two organisations announced their intent to merge, which would have combined Cottage Health's three hospitals with Sansum Clinic's 24 outpatient clinics. However, the merger was called off in 2017 after a four-year battle to gain federal regulatory approval due to concerns about anti-competitive behaviour and rising healthcare costs.
Despite the merger's failure, Sansum Clinic and Cottage Health continue to work together to expand access to care and improve patient health and wellness. For example, in 2020, they expanded their network relationship with Blue Shield of California to serve Medicare Advantage members.
Sansum Clinic's independence as a non-profit organisation allows it to maintain its mission of improving patient health through innovation. Its size and scope, with numerous affiliated physicians and patient care facilities, enable it to serve a large patient population in the region effectively. Sansum Clinic's history, expertise, and dedication to advancing healthcare make it a valuable resource for the community between Los Angeles Basin and the San Francisco Bay Area.
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Cottage Health System was formed in 1996 as the non-profit parent organisation of Santa Barbara Cottage Hospital
Santa Barbara Cottage Hospital, founded in 1888, has been serving the community for over a century. It is the largest medical facility in the county and is owned by the non-profit Cottage Health System. In 1996, Cottage Health was established as the umbrella organisation for Santa Barbara Cottage Hospital and its affiliates: Cottage Children's Medical Center, Cottage Rehabilitation Hospital, Goleta Valley Cottage Hospital, and Santa Ynez Valley Cottage Hospital.
Cottage Health is committed to delivering exceptional healthcare services and continuously improving medical practices for the residents of California's Central and South Coast. Guided by a volunteer board of directors from the Santa Barbara community, Cottage Health upholds core values of excellence, integrity, and compassion.
The Cottage Health System includes the Cottage Children's Medical Center, a Level 1 Trauma Center, Neuroscience Institute, Heart and Vascular Center, Center for Orthopedics, and Rehabilitation Hospital. With a focus on innovation and community well-being, Cottage Health strives to provide access to quality healthcare for all residents.
Santa Barbara Cottage Hospital has undergone significant transformations to enhance its services. This includes the addition of new nursing pavilions, a diagnostic and treatment pavilion, modernisation of the emergency department, and a new energy centre. The hospital's mission is to provide superior healthcare and improve the health of its community through excellence, integrity, and compassion.
Sansum Clinic, founded in 1921, is an independent non-profit healthcare organisation serving south Santa Barbara County. It offers over 50 specialties and serves a large patient population at its 22 patient care facilities. Sansum Clinic has collaborated with Blue Shield of California and Cottage Health to expand access to care and improve health and wellness for Medicare Advantage members.
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The proposed merger between Cottage Health and Sansum Clinic was called off in 2017
Cottage Health and Sansum Clinic had touted the merger as a way to create an "integrated health delivery system," aiming to increase efficiency and better serve the community. However, critics worried that the merged entity would monopolize outpatient care and lead to higher consumer costs. The ongoing regulatory delays and uncertainty about the future of the deal ultimately led both organizations to withdraw the proposal.
At the time of the proposed merger, Cottage Health, with over 3,600 employees and $751 million in annual revenue, was the dominant healthcare provider in South Santa Barbara County. Sansum Clinic, founded in 1921, was the largest independent nonprofit healthcare organization between the Los Angeles Basin and the San Francisco Bay Area, serving over 130,000 patients annually. Despite the called-off merger, both organizations expressed their commitment to continue working together, building on their nearly 100-year history of collaboration.
While the merger faced challenges, it highlighted the trend towards integration in the healthcare sector, particularly in California. The integration model aims to create a more efficient and coordinated healthcare delivery system, leveraging the strengths of both inpatient and outpatient organizations. However, in the case of Cottage Health and Sansum Clinic, geographic considerations and regulatory concerns ultimately prevented the realization of this integrated system.
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Cottage Hospital was designed to have a series of bungalows housing various medical departments
The concept of a cottage hospital originated in the United Kingdom, where it referred to a small rural building with several beds. The term was coined in the early 19th century, and the first cottage hospital was established in Southam, Warwickshire, in 1818 by the village surgeon, Mr Henry Lilley Smith. This was followed by the conversion of cottages into the first cottage hospital in Piccotts End, near Hemel Hempstead, by Sir Astley Cooper in 1827.
Cottage Hospital in Santa Barbara, California, was envisioned as a series of bungalows, with each medical department housed in a separate cottage. This idea was proposed by an individual named Ashley, who enlisted a group of 50 women to help raise the $6,000 needed to make it a reality. Despite strong community support, including a successful five-day benefit carnival, the hospital ultimately compromised on a three-story redwood Victorian building with 25 beds, retaining the name Cottage Hospital for its "cozy sound." The hospital was constructed on the outskirts of town, surrounded by oak and walnut trees, and lacked access to gas, electricity, and city water.
The original wooden structure of the Santa Barbara Cottage Hospital served the community for around 20 years before becoming a fire hazard. A new steel-and-concrete complex was built in 1913, located on the same block as the current hospital. The hospital has since expanded significantly, now serving as a 519-bed acute care teaching hospital and trauma center, the largest between Los Angeles and the Bay Area.
Cottage Health, the nonprofit organization that operates the Santa Barbara Cottage Hospital, also runs two other hospitals in Goleta and Santa Ynez. Sansum Clinic, the largest independent nonprofit healthcare organization in the region, has expanded its network relationship with Cottage Health to serve Medicare Advantage members better. This collaboration allows patients in-network access to Sansum Clinic's 50 specialties and service lines, improving access to quality healthcare.
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Frequently asked questions
No, Sansum Clinic is not part of Cottage Hospital. In 2013, Cottage Health and Sansum Clinic announced a merger that would bring together Cottage Health's three hospitals and Sansum Clinic's outpatient clinics. However, in 2017, the merger was called off due to regulatory concerns and anti-competitive grounds.
Cottage Hospital and Sansum Clinic have a long history as neighbours in Santa Barbara, California. In 1920, Dr. William Sansum expanded the Potter Metabolic Clinic into a wing of Cottage Hospital, and the two organizations have had a close relationship ever since.
Founded in 1921, Sansum Clinic is the largest independent nonprofit healthcare organization between Los Angeles and the San Francisco Bay Area. It serves over 130,000 patients annually with more than 220 affiliated physicians across 22 patient care facilities in South Santa Barbara County.
Cottage Health is a non-profit healthcare provider that operates three hospitals in Goleta, Santa Barbara, and Santa Ynez, with a total of eight facilities across the Central Coast region of California. It has been serving the community for over 129 years and specializes in areas such as paediatrics, trauma care, neuroscience, and cardiology.
In 2018, Cottage Health System and Sansum Clinic signed a letter of intent to develop an integrated health system. This proposed collaboration would bring Sansum Clinic into the Cottage Health System, allowing for expanded healthcare services and improved quality, outcomes, and affordability for patients.
