Health care advocates are calling for stronger state oversight of hospital costs in Santa Barbara County. During a virtual town hall Tuesday hosted by Health Access California, advocates said rising hospital prices are driving up insurance premiums, deductibles and other out-of-pocket costs for patients.
The group released a report highlighting Santa Barbara Cottage Hospital as one of seven hospitals statewide—identified by California's Office of Health Care Affordability—as unusually expensive.
According to the report, nearly 48,000 Santa Barbara County residents report having difficulty paying medical bills. Health Access California argues that high hospital prices contribute to rising health care costs across the region.
"When hospital prices go up, that directly impacts how much people are paying for their premiums, as well as their deductibles and other cost sharing," said Katie Van Deynze, policy and legislative advocate for Health Access California.
The report says Santa Barbara Cottage Hospital receives payments from commercial insurers that are significantly higher than Medicare reimbursement rates for the same care.
The report also argues Cottage Health's presence in southern Santa Barbara County gives the system significant leverage in negotiating prices. It notes the only hospital within about 15 miles of Santa Barbara Cottage Hospital is another Cottage facility, Goleta Valley Cottage Hospital.
Health Access California also examined the hospital system's finances. The report states that the Cottage hospital system is financially strong, yet provides a smaller share of its revenue as charity care than the statewide average.
The organization argues those findings show high prices are not necessary to maintain the hospital's financial stability.
Health Access California is urging the California Office of Health Care Affordability to approve new enforcement regulations. If adopted, they would allow financial penalties for hospitals and other health care organizations that repeatedly drive-up healthcare costs for patients. The Office of Health Care Affordability Board is expected to consider the proposed enforcement regulations Aug. 26.
KCBX reached out to Cottage Health for comment on the report's findings and had not received a response before publication.
