Santa Barbara Cottage Hospital identified as one of California’s seven high-cost hospitals

SANTA BARBARA, Calif. — Santa Barbara Cottage Hospital has been identified by California's Office of Health Care Affordability (OHCA) as one of seven high-cost hospitals in the state, prompting renewed discussion about rising health care costs and affordability.

The designation is based on factors including hospital prices and spending patterns—not the quality of care.

Katie Van Deynze with Health Access California said Cottage was selected from more than 400 hospitals statewide.

"One of seven out of more than 400 hospitals in the state," Van Deynze said.

Health Access California, a statewide consumer advocacy coalition, highlighted the designation during a virtual town hall Tuesday focused on health care affordability in Santa Barbara County.

Chris Noble, organizing director for Health Access California, criticized the hospital's pricing.

"It is unacceptable that hospitals like Cottage are able to price gouge as they have been," Noble said.

Noble said workers, consumers and small business owners have shared concerns about the rising cost of health care.

"We've heard from workers, consumers and small business owners that are struggling to keep their businesses afloat, hire employees and offer benefits because of just how expensive it is to access affordable health care," Noble said.

Advocates say health care costs have continued to rise faster than inflation, making it increasingly difficult for many Californians to afford medical care.

Van Deynze said lowering hospital cost-growth targets is critical to keeping health care within reach.

"If there isn't a lower target, they are starting at such a higher base than the rest of the state, and they're just going to keep getting higher and higher, and it's going to be even more unattainable for people to afford care that they need," she said.

According to the California Health Care Foundation, six in ten Californians delayed or skipped medical care in the past year because of cost. Of those who postponed care, 42% said their condition became worse.

Health Access California says state officials are expected to consider enforceable penalties for hospitals that fail to meet California's health care cost-growth targets.

Cottage Health responds

Cottage Health responded to News Channel with a statement emphasizing its nonprofit mission and commitment to affordability.

“Santa Barbara Cottage Hospital is a locally founded, not-for-profit hospital with generations of care centered on community. Cottage invests in our community through financial assistance programs, through our centers for population health, innovation and research, through community partnerships and through education and training programs to help recruit and retain healthcare professionals to care for the people in our region.

We are concerned about care affordability and access, and every employee at Cottage is engaged in ideas to reduce healthcare cost for our community. We’ve identified group purchasing efficiencies and avenues to reduce supply costs, at the same time growing our services to increase access to care for all patients.” — Cottage Hospital