Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $10,425,873

• 1e · Government grants (contributions)

  $19,217,477

• 1f · All other contributions, gifts and grants

  $776,882

• 2a · Program service revenue: NET PATIENT SERVICE REVENUE

  total $737,509,918 · related or exempt $737,509,918

• 2b · Program service revenue: LABORATORY SERVICES

  total $49,329,391 · related or exempt $37,055,752 · unrelated business $12,273,639

• 2c · Program service revenue: CA HOSPITAL FEE PROGRAM

  total $40,418,983 · related or exempt $40,418,983

• 2f · All other program service revenue

  total $0 · related or exempt $0 · unrelated business $0 · excluded $0

• 3 · Investment income

  total $18,096,437 · excluded $18,096,437

• 6a · Gross rents

  real property $131,766

• 6b · Less rental expenses

  real property $26,609

• 6c · Rental income or loss

  real property $105,157 · personal property $0

• 6d · Net rental income or loss

  total $105,157 · excluded $105,157

• 7a · Gross sales of assets other than inventory

  securities $180,991,839 · other assets $40,375

• 7b · Less cost or other basis and sales expenses

  securities $149,821,493 · other assets $156,093

• 7c · Gain or loss

  securities $31,170,346 · other assets -$115,718

• 7d · Net gain or loss

  total $31,054,628 · excluded $31,054,628

• 11a · Other revenue: Settlements

  total $9,118,325 · related or exempt $9,118,325

• 11b · Other revenue: CAFETERIA/GIFT SHOP/DEL

  total $4,064,718 · excluded $4,064,718

• 11c · Other revenue: Lab Management

  total $3,850,436 · related or exempt $3,850,436

• 11d · All other revenue

  total $4,265,759 · related or exempt $4,258,531 · unrelated business $7,228 · excluded $0

• 11e · Other revenue, total

  $21,299,238

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $4,602,958 · program services $4,602,958

• 2 · Grants to domestic individuals

  total $18,443 · program services $18,443

• 3 · Grants to foreign organizations and individuals

  total $0 · program services $0

• 4 · Benefits paid to or for members

  total $0 · program services $0

• 5 · Compensation of officers, directors and key employees

  total $0 · program services $0 · management and general $0

• 6 · Compensation of disqualified persons

  total $0 · program services $0 · management and general $0

• 7 · Other salaries and wages

  total $284,047,494 · program services $245,396,463 · management and general $38,651,031

• 8 · Pension plan contributions

  total $8,964,841 · program services $8,440,574 · management and general $524,267

• 9 · Other employee benefits

  total $108,346,441 · program services $77,015,662 · management and general $31,330,779

• 10 · Payroll taxes

  total $19,847,880 · program services $18,174,497 · management and general $1,673,383

• 11a · Fees: management

  total $1,717,329 · program services $127,267 · management and general $1,590,062

• 11b · Fees: legal

  total $2,315 · management and general $2,315

• 11e · Fees: professional fundraising services

  total $0 · fundraising $0

• 11f · Fees: investment management

  total $3,286,522 · management and general $3,286,522

• 11g · Fees: other

  total $112,066,468 · program services $96,645,219 · management and general $15,421,249 · fundraising $0

• 12 · Advertising and promotion

  total $221,707 · program services $205,321 · management and general $16,386

• 13 · Office expenses

  total $16,041,236 · program services $11,438,083 · management and general $4,603,153

• 14 · Information technology

  total $28,352,059 · program services $17,759,066 · management and general $10,592,993

• 16 · Occupancy

  total $19,010,812 · program services $15,212,999 · management and general $3,797,813

• 17 · Travel

  total $347,300 · program services $224,583 · management and general $122,717

• 18 · Travel or entertainment for public officials

  total $0 · management and general $0

• 19 · Conferences, conventions and meetings

  total $373,053 · program services $147,704 · management and general $225,349

• 20 · Interest

  total $17,145,262 · program services $14,636,433 · management and general $2,508,829

• 21 · Payments to affiliates

  total $0 · program services $0

• 22 · Depreciation, depletion and amortization

  total $52,692,840 · program services $43,304,379 · management and general $9,388,461

• 23 · Insurance

  total $5,414,976 · program services $3,938,651 · management and general $1,476,325

• 24a · Other expenses: Medical Supplies

  total $127,318,091 · program services $127,047,465 · management and general $270,626

• 24b · Other expenses: Hospital Fee Program

  total $32,268,141 · program services $32,268,141

• 24c · Other expenses: Equipment Maintenance

  total $13,646,027 · program services $12,341,336 · management and general $1,304,691

• 24d · Other expenses: Licenses and fees

  total $791,520 · program services $263,105 · management and general $528,415

• 24e · All other expenses

  total $1,933,944 · program services $895,492 · management and general $1,038,452 · fundraising $0

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $59,516,376 · end of year $22,481,062

• 2 · Savings and temporary cash investments

  beginning of year $93,301,776 · end of year $44,922,836

• 4 · Accounts receivable

  beginning of year $109,838,731 · end of year $108,631,866

• 5 · Loans and receivables from officers and key people

  beginning of year $27,487,440 · end of year $16,243,640

• 6 · Loans and receivables from disqualified persons

  beginning of year $0 · end of year $0

• 7 · Other notes and loans receivable

  beginning of year $300,000 · end of year $300,000

• 8 · Inventories for sale or use

  beginning of year $17,539,395 · end of year $16,872,115

• 9 · Prepaid expenses and deferred charges

  beginning of year $66,554,196 · end of year $3,884,543

• 10a · Land, buildings and equipment: cost or other basis

  $1,176,778,161

• 10b · Land, buildings and equipment: accumulated depreciation

  $490,494,159

• 10c · Land, buildings and equipment, net

  beginning of year $707,436,939 · end of year $686,284,002

• 11 · Investments: publicly traded securities

  beginning of year $561,871,040 · end of year $524,198,389

• 12 · Investments: other securities

  beginning of year $297,176,142 · end of year $337,547,135

• 13 · Investments: program-related

  beginning of year $0

• 14 · Intangible assets

  beginning of year $0 · end of year $705,000

• 15 · Other assets

  beginning of year $189,337,826 · end of year $331,199,918

• 17 · Accounts payable and accrued expenses

  beginning of year $96,316,581 · end of year $105,113,918

• 19 · Deferred revenue

  beginning of year $51,887 · end of year $42,651

• 22 · Loans and payables to officers and key people

  beginning of year $0 · end of year $0

• 25 · Other liabilities

  beginning of year $544,633,747 · end of year $533,103,030

• 27 · Net assets without donor restrictions

  beginning of year $1,465,038,411 · end of year $1,447,268,828

• 28 · Net assets with donor restrictions

  beginning of year $24,319,235 · end of year $7,742,079

The filer's explanations (Part III)

Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation

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.

Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan

COTTAGE HEALTH PROVIDES CERTAIN EXECUTIVES A SUPPLEMENTAL RETIREMENT PROGRAM. THE PROGRAM IS DEFINED AS DEFERRED COMPENSATION UNDER THE IRC SECTION 457(F). THE ANNUAL CONTRIBUTION IS 9.8% 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 ORGANIZATION AND ARE INCLUDED IN OTHER ASSETS AND THE ACCRUED EXPENSE IS INCLUDED IN ACCRUED EXPENSES IN THE ACCOMPANYING CONSOLIDATED BALANCE SHEETS. THE AMOUNTS ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. DEFERRED CONTRIBUTIONS TO THIS PLAN WILL BE REPORTED AGAIN AS REPORTABLE COMPENSATION IN THE YEAR PAID. IN 2022, RECIPIENT PAYOUTS FROM THE 457(F) PLAN WERE Lisa Moore ($54,653) and Richard Beswick ($55,526).

Schedule J, Part I, Line 7 Non-fixed payments

Each year the Board of Directors determines if a bonus can be paid based on the financial operating results of the completed year. The Board determines the total amount of the bonus pool. This pool of money is distributed to employees in the management team based on the individual's achievement of personal goals and the overall team's accomplishment of system-wide goals pertaining to quality, service excellence, employee engagement, financial or other. The payout for individuals is calculated based on percentages of their base salary and their position.

Schedule J, Part II

Beginning in 2014, THE ORGANIZATION ENTERED INTO A SPLIT-DOLLAR TERM LOAN ARRANGEMENT WITH THREE EXECUTIVES IN EXCHANGE FOR THEIR AGREEMENT TO FOREGO BENEFITS UNDER A SECTION 457(F) DEFERRED COMPENSATION PLAN. THE ORGANIZATION MAKES LOANS TO THE EXECUTIVES THAT ARE USED TOWARDS PREMIUMS ON LIFE INSURANCE POLICIES. INTEREST ON THE LOANS ACCRUES AT A RATE OF INTEREST IN EXCESS OF THE APPLICABLE FEDERAL RATE. UPON RETIREMENT, THE EXECUTIVES WILL BE PERMITTED TO BORROW ANNUALLY FROM THE ACCUMULATED CASH VALUE TO RECEIVE A TARGET BENEFIT AS LONG AS THE POLICIES' RETAIN ENOUGH CASH VALUE TO REPAY THE ORGANIZATION'S LOANS AND ACCRUED INTEREST FROM THE DEATH BENEFITS. THE LOANS ARE SECURED WITH THE POLICIES' CASH VALUE AND DEATH BENEFITS AND THE ORGANIZATION SHARES IN ANY EXCESS DEATH BENEFITS UNDER THE POLICIES.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• PACIFIC DIAGNOSTIC LABORATORIES LLC

  OUTPATIENT LABORATORY SERVICES · CA · income $53,210,296 · assets $23,013,014

  Directly controlled by SANTA BARBARA COTTAGE HOSPITAL

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• Villa Riviera Real Estate Company

  C Corporation · Workforce Housing Development · CA · 0% owned · share of income $0 · share of assets $0 · controlled entity

  Directly controlled by SB Cottage Hosp Fndtn