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    Cottage, Sansum May Fuse


    Thursday, July 2, 2009
    By Nick Welsh (Contact)
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    About 100 South Coast doctors met at Cottage Hospital last week to discuss the possibility of Cottage Hospital absorbing Sansum Medical Clinic. Talks have been underway for nearly a year for Cottage Health Systems to become the parent company for Sansum. Cottage CEO Ron Werft explained that Cottage, through economies of scale based on its size and buying power, could save Sansum considerable overhead costs. Werft noted that Cottage saved $3.5 million in expenses when it took over the Rehabilitation Institute last year without any loss of direct service positions. Werft said recent studies show that the number of specialists in Santa Barbara is declining and that the South Coast’s high cost of living is making it tougher to recruit replacements. Especially hard hit are the primary care physicians. “It’s not a real problem now,” he said, “but it could become one in five to 10 years.” Werft said Cottage has traditionally left the recruitment of doctors to clinics like Sansum because by state law, hospitals are not allowed to hire doctors directly. But by working with Sansum, he said, Cottage hopes to address the shortage.

    Many independent physicians not affiliated with Sansum worry they may be shut out if such a realignment occurs. Werft said Cottage recognizes the importance of independent physician groups and is seeking to structure ways Cottage can reduce their overhead as well. He acknowledged that some regard other Cottage takeovers with alarm, but in all instances, Werft said, Cottage has helped keep open the doors of struggling healthcare institutions that might otherwise go dark.

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    There are some points that need clarification in this article and a few more that need to be made:
    1. There are no plans for a Cottage - Sansum merger.
    2. Cottage has no respect for the medical community in our town and cares only about money, power and influence.
    3. Cottage sneakily shut down St. Francis and then demolished it, closing out patient surgical suites and a Labor-Delivery Ward (one where babies dont get stolen), and shut down the counties' only geriatric psychiatry ward and has no intention of replacing it (hint: aint no money in it, so screw the community).
    4. Cottage now owns Goleta and Sant Ynez Hospital, and the Rehabilitation Institute, with a total monopoly in the country - never a good thing for patients or the medical community - and now is raking in the cash because they can increase thier fees astronomically.
    5. Cottage sneakily bought out Sansums Lab and now is overcharging services and probably trying to force them into a merger using everything in thier power (including this press piece).
    6. Cottage under the direction of Ron Weft, the medical robber baron of Santa Barbara, is diminishing the quality and access of medical care, extorting the community for money, and will eventually destroy one of the finest medical communities in a small town setting ever seen, unless the community rises up to stop it.

    neuroperson (anonymous profile)
    July 2, 2009 at 12:25 p.m. (Suggest removal)

    Even though I use Sansum and Cottage on a regular basis I perfer to keep them seperate, just due to the fact that it could slam the door on anyone and any physican who is not part of the their network. This could hamper medical care in the community. If this is going to be so lets have them try out the idea the Obama Administration is proposing simliar to the one they have in Wisconsin of a Health Care Cooperative and I would like to see the people of the region have the ability to be investors into the organization. Because right now both organizations are non-profits which if to be for "public benefit" but right now there no way for the average user can have their voices heard. To be part of the Board of Directors requires a lot of financial capital at which point you are able to make your issues and positions pushed ahead. If Sansum/Cottage were to merge I very much like to see an organization such as REI Co-Op as a model where real members of the community and everyone is able to serve for the betterment of the whole community, both in and north and south County. It should be wide selection of people not just the chosen few.

    fmrlobbyist (anonymous profile)
    July 2, 2009 at 12:29 p.m. (Suggest removal)

    Cottage has sucked up everything in its path, leaving no choice for patients in this area. It's just a matter of time before they swallow up Marian Medical in Santa Maria, too.

    Doesn't the public have any protection from this kind of medical monopoly? I can't believe this monster is being allowed to swallow up every hospital and clinic in its path, and nothing is being done to stop it.

    Is anyone else concerned about this?

    Holly (anonymous profile)
    July 3, 2009 at 12:19 a.m. (Suggest removal)

    If the acquisition of Rehab resulted in savings so might the consolidation of Cottage and Sansum. B4 condemning this idea, let's all stop and think about the need for improvements in the efficiency of medical care. My experience with Cottage is terrific. Sansum is OK, but could be better managed. This may not be such a bad idea. As for St. Francis, they were losing money for years; there was nothing "sneaky" about closing them down - it was done quite publicly and with plenty of notice. I'm wondering how many of those who complain about St. F closing are also opposing its use as housing for medical personnel. If one wants better and less expensive health care, one must expect change..

    JohnLocke (anonymous profile)
    July 5, 2009 at 10:10 a.m. (Suggest removal)

    Source of opinions on this issue are way too important to keep anonymous - there will be many logical and honorable arguments, but also many self-interested arguments. E.G. is 'neuroperson' someone in the medical community with an axe to grind against Ron Werft (BTW, I never heard of the guy)? Could be, or maybe not. Perhaps the Indy editor could encourage truly open (i.e. non-anonymous) dialogue on this very important issue, so the readers can assess the integrity of the positions taken.

    RCMeltzer (anonymous profile)
    July 5, 2009 at 10:57 a.m. (Suggest removal)

    I second John Locke's statement that Cottage hasn't been "sneaky" with acquisitions. The financial issues surrounding the purchase of Saint Francis and RISB were covered in the local media. Both institutions were doomed financially when Cottage purchased them and would have been purchased by someone else or shut down regardless of Cottage's involvement.

    Kingprawn (anonymous profile)
    July 9, 2009 at 3:34 p.m. (Suggest removal)

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