Friday, March 23 , 2018, 8:30 am | Fair 47º


Cottage Hospital Chooses Possible Buyer for Outpatient Surgical Center

In April, Santa Barbara Cottage Hospital announced the possible sale of its Outpatient Surgery Center, at 2403 Castillo St. in Santa Barbara. 

Since that time, Cottage Health hired Cain Brothers & Company to identify and work with potential buyers.

Based on this work, we have reviewed and evaluated proposals and selected United Surgical Partners International (USPI) as the most qualified potential buyer. 

Next steps include due diligence by USPI to complete a comprehensive appraisal of Santa Barbara Cottage Hospital’s Outpatient Surgery Center in preparation for a potential purchase.

Once this is completed and both parties agree it is a viable option, an agreement will be executed and presented to the Federal Trade Commission for approval. 

We expect this process to take at least five more months and the sale of the Outpatient Surgery Center will only occur if there is a qualified buyer and it results in a successful affiliation with Sansum Clinic and Cottage Health.

Cottage Health and Sansum Clinic signed a letter of intent in June 2013 to develop an integrated health system that would bring together the two not-for-profit healthcare organizations. It is a model that responds to the Affordable Care Act’s call for partnerships and efficiencies, and one that has been successful in other parts of the country and the state.

We have been in discussions with the Federal Trade Commission on the proposed transaction for the past two years. It became evident that the sale of Santa Barbara Cottage Hospital’s Outpatient Surgery Center would facilitate FTC support for the Cottage Health and Sansum Clinic affiliation. 

About Cottage Health

The not-for-profit Cottage Health is the leader in providing advanced medical care to the Central Coast region.

Our specialties include the Cottage Children’s Medical Center, Level 2 Trauma Center, Neuroscience Institute, Heart & Vascular Center, Center for Orthopedics, and Rehabilitation Hospital.

Our medical staff is comprised of more than 700 physicians, including many sub-specialists found at academic medical centers.

Last year, the Cottage Health hospitals in Goleta, Santa Barbara and Santa Ynez Valley provided inpatient care for 20,000 people, treated 72,000 patients through their 24-hour emergency departments and helped deliver 2,400 newborns.

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