340B: A Federal Program to Support Safety-Net Healthcare Providers

The 340B prescription drug program supports our hospitals in providing vital health care services for the communities we serve, regardless of a patient’s ability to pay. The program is available to hospitals that provide a high level of services to low-income individuals or serve isolated rural communities.

Santa Barbara Cottage Hospital provides a broad scope of services, including a Level I Trauma Center to serve the region, and Santa Ynez Valley Cottage Hospital is a critical access hospital serving a rural community. Both hospitals have been part of the program since 2017 and maintain rigorous internal oversight to ensure they meet the federal 340B program requirements.

Benefits of the 340B Program

The 340B program allows hospitals to better serve all patients, regardless of income level or insurance coverage. Cost savings from reduced drug pricing are invested back into hospital programs and services, including:

  • Medications upon discharge at no cost to patients with financial need
  • Access to specialty services
  • Access to financial assistance
  • Free and low-cost health screenings
  • Level I Trauma Center
  • Level II Pediatric Trauma Center
  • Opioid stewardship program to help affected patients and families
  • No-cost nicotine replacement therapy for patients trying to quit smoking

Cottage Health - 340B By the Numbers (2018)

  • $7.1 million: Amount of savings realized from the 340B program
  • $20.9 million: Amount provided as charity care and health education training
  • $116 million: Cost of uncompensated care for Medi-Cal and Medicare patients

Cottage Health

Cottage Health is a not-for-profit organization providing advanced medical care for patients throughout California at Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital, Santa Ynez Valley Cottage Hospital, Cottage Children’s Medical Center and Cottage Rehabilitation Hospital. Specialties include the Level I Trauma Center, Neuroscience Institute, Heart & Vascular Center, Center for Orthopedics and Level II Pediatric Trauma Center.

Cottage Health, in partnership with physicians, is recognized as a California leader in quality, safety, patient experience, transparency and cost-effective care. The medical staff is comprised of more than 700 physicians, many with subspecialties typically found only at university medical centers.

In 2018, Cottage Health hospitals provided inpatient care for 20,000 people, treated 79,000 patients through their 24-hour emergency departments and helped deliver 2,100 newborns.

The mission of Cottage Health is to provide superior health care and improve the health of our communities through a commitment to our core values of excellence, integrity and compassion. Each day our staff, physicians and volunteers reinforce the importance of our core values.