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      <Desc>Kidney Dialysis In-Center Chronic Kidney Disease ("CKD") is a public health problem in the United States that impacts approximately 28 million Americans. It is well known that hypertension and diabetes are two leading causes of kidney failure. The 2019 United States Renal Data System Report shows that over 746,557 Americans who live with End Stage Renal Disease ("ESRD"), close to 72% are treated by dialysis. Satellite Healthcare owns and operates 81 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (WellBound) providing a variety of treatment options to our patients. In 2019, Satellite Healthcare provided over 1,462,799 dialysis treatments and services to over 8,301 patients in California, Texas, Indiana, Illinois, New Jersey, and Tennessee. Peritoneal Dialysis and Home Hemo Center: WellBound, a Satellite Healthcare company, is the first healthcare services company to specialize in the delivery and support of daily home dialysis therapies through free-standing, patient-friendly Centers of Excellence. Our unique care model is built on the premise that early-stage patient education is the first step in an effective treatment program. As such, we dedicate significant resources to reaching patients before they require dialysis. Once dialysis is required, WellBound's goal is to enable nephrologists to easily offer self-care (home) dialysis therapies to their patients. We strive to empower patients to take charge of their health and experience the clinical and quality of life benefits associated with self-care dialysis. See also community benefit report below: COMMUNITY BENEFIT REPORT 2019 At Satellite Healthcare, our mission is to make life better for patients living with kidney disease. Our dedication to patient care extends beyond the doors of our dialysis centers and directly into the communities we serve. Collectively and individually, our organization and staff contribute time, talent and monies to address and build awareness of kidney disease. The 2019 calendar year held special significance as it marked the 45th anniversary of Satellite Healthcare. We were founded in 1974 as a not-for-profit dialysis provider by Stanford nephrologist Norman S. Coplon, MD. Over the years, we have become known for informative kidney education, high quality dialysis services and advancing kidney care through research. We are a community asset with no owners, investors or shareholders. Any extra funds from operations are invested back into patient services, new research and education initiatives and to continue our longstanding charitable efforts. In 2019, our Community Benefit contributions totaled $13.81 million. Satellite Healthcare supported activities of not-for-profit organizations that are working wonders in our neighborhoods. Additionally, we provided scholarships, internships and fellowships. The stories we hear are amazing and we see the ripple effect, as the people we help pass on the benefits of that investment by helping others. Some highlights include: Bringing kidney education and health screenings to at-risk communities, Satellite Healthcare sponsored Kidney Action Day with the American Kidney Fund in San Jose, California and Memphis, Tennessee. The day featured health education, cooking demonstrations, games and screenings for high blood pressure, diabetes and kidney disease. Satellite Healthcare staff participated as volunteers. Underscoring the importance of home dialysis, funding was provided to Home Dialyzors United to continue their educational programs and further spread the word about the benefits of dialyzing at home. Providing nephrology healthcare professionals with timely information on chronic kidney disease guidelines and standards, medication updates and research, so they may better care for their patients, Satellite Healthcare joined the National Kidney Foundation in making the annual Medical Symposium possible. Our like-minded organizations have a strong, historic collaborative relationship that spans education, research, advocacy and fundraising that is like no other in the kidney community. Talking with others who have chronic kidney disease or are on dialysis is educating and empowering. To capture support group conversations, Satellite Healthcare made a donation to cover fees for videotaping Bay Area Association of Kidney Patients support groups so programs can be extended to broader audiences through their website. Working with academic institutions, we provided kidney research grants and we contributed to conferences to shine a light on advancements in patient care. Satellite Healthcare experts often served as speakers, elevating our role as a respected thought leader in kidney care. This is work we feel privileged to perform and fund. Our greatest lesson is the reality that we can best carry out our responsibility to our patients when we deeply engage in the health of our communities. We look forward to continuing our journey as we strive to prevent the onset of kidney disease. And, if there is a loss of kidney function that we provide early education to delay the start of dialysis. When dialysis is needed that it happens at home and we prepare and support patients through transplantation. This is how we deliver on the promise of making life better for patients with kidney disease.</Desc>
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        <ExplanationTxt>SHI APPLIES THE PROVISIONS OF FINANCIAL ACCOUNTING STANDARDS BOARd ("FASB") ACCOUNTING STANDARDS CODIFICATION ("ASC") 740-10, INCOME TAXES, RELATING TO ACCOUNTING FOR UNCERTAIN TAX POSITIONS. SHI RECOGNIZES THE TAX BENEFIT FROM UNCERTAIN TAX POSITIONS ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY THE TAX AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAx BENEFIT IS MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. SHI RECOGNIZED INTEREST AND PENALTIES RELATED TO INCOME TAX MATTERS IN OPERATING EXPENSES. SHI HAS EVALUATED ITS CURRENT TAX POSITIONS AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2019 AND 2018, SHI DOES NOT HAVE ANY SIGNIFICANT UNCERTAIN TAX POSITIONS FOR WHICH A RESERVE WOULD BE NECESSARY.</ExplanationTxt>
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        <TitleTxt>VP CHIEF HR OFFICER</TitleTxt>
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        <DeferredCompensationFlngOrgAmt>38166</DeferredCompensationFlngOrgAmt>
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        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>758629</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>MARSHA DODD</PersonNm>
        <TitleTxt>CHIEF BI OFFICER</TitleTxt>
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        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>Waraporn Anantiyo</PersonNm>
        <TitleTxt>VP Home Services</TitleTxt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>Keith W Lester</PersonNm>
        <TitleTxt>SVP Optimal Life</TitleTxt>
        <BaseCompensationFilingOrgAmt>270035</BaseCompensationFilingOrgAmt>
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    </IRS990ScheduleJ>
    <IRS990ScheduleL documentId="IRS990ScheduleL">
      <LoansBtwnOrgInterestedPrsnGrp>
        <PersonNm>Estrella Maria Parker</PersonNm>
        <RelationshipWithOrgTxt>VP Chief Human Resources Officer</RelationshipWithOrgTxt>
        <LoanPurposeTxt>Relocation</LoanPurposeTxt>
        <LoanFromOrganizationInd>X</LoanFromOrganizationInd>
        <OriginalPrincipalAmt>225000</OriginalPrincipalAmt>
        <BalanceDueAmt>48750</BalanceDueAmt>
        <DefaultInd>false</DefaultInd>
        <BoardOrCommitteeApprovalInd>false</BoardOrCommitteeApprovalInd>
        <WrittenAgreementInd>true</WrittenAgreementInd>
      </LoansBtwnOrgInterestedPrsnGrp>
      <LoansBtwnOrgInterestedPrsnGrp>
        <PersonNm>Dr Graham Abra</PersonNm>
        <RelationshipWithOrgTxt>Sr. Director Medical Clinical Affairs</RelationshipWithOrgTxt>
        <LoanPurposeTxt>Housing</LoanPurposeTxt>
        <LoanFromOrganizationInd>X</LoanFromOrganizationInd>
        <OriginalPrincipalAmt>200000</OriginalPrincipalAmt>
        <BalanceDueAmt>160000</BalanceDueAmt>
        <DefaultInd>false</DefaultInd>
        <BoardOrCommitteeApprovalInd>false</BoardOrCommitteeApprovalInd>
        <WrittenAgreementInd>true</WrittenAgreementInd>
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      <TotalBalanceDueAmt>208750</TotalBalanceDueAmt>
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    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART VI Section B, Line 11B</FormAndLineReferenceDesc>
        <ExplanationTxt>The organization's accounting department worked closely with the outside accounting firm it engaged to prepare the return. The final draft of the Form 990 was reviewed by the Controller, CFO, and the audit committee. A complete copy of the return was provided to the entire voting Board before the return was filed with the Internal Revenue Service.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART VI, Section B, Line 12C</FormAndLineReferenceDesc>
        <ExplanationTxt>The Satellite Healthcare Board of Directors is charged with monitoring proposed or ongoing transactions for conflicts of interest and addressing any potential or actual conflicts. Pursuant to the Conflicts of Interest Policy of Satellite Healthcare Inc., an annual conflict of interest disclosure statement, aimed at determining any family and business relationships and transactions or other transactions that may pose a potential conflict, is distributed to all covered persons (i.e., board members, officers and executive leadership or key employees). Covered persons are required to disclose real or potential conflicts at the time when such conflicts arise. When someone becomes a covered person and annually thereafter, each covered person is required to sign a statement affirming that he/she: (1) has received a copy of the Conflict of Interest Policy; (2) has read the Policy and understands said Policy; and (3) agrees to comply with all requirements of the Policy, including completing the conflicts of interest questionnaire. The completed questionnaires are reviewed by the Satellite Healthcare Board of Directors or their designee and any persons with actual or potential conflicts are informed via written communication. The procedures for addressing any conflict of interest includes, but is not limited to, the following: (1) the conflicting interest is fully disclosed to the Board; (2) the interested person responds to factual questions related to the substance of the transaction or arrangement being considered, after which he/she shall leave the meeting; (3) the person with the conflict of interest is excluded from the discussion and approval of such transaction; (4) alternatives to the proposed transaction are investigated, competitive bids or comparable valuations are obtained; (5) any conflicting issues during the course of a Board meeting which cannot be resolved are referred to the Governance Committee; and (6) the transaction or action must be approved by a majority of disinterested persons.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART VI, Section B, Line 15</FormAndLineReferenceDesc>
        <ExplanationTxt>For 2019 compensation, The Board appointed a Compensation Committee, comprised solely of independent directors (none of which have a conflict of interest with respect to the compensation arrangement), to be accountable for setting reasonable compensation packages for each officer or key employee, including the CEO. The Compensation Committee developed, consistent with the organization's philosophy and principles, the annual performance goals and criteria to be used in determining merit increases and variable compensation criteria for officers and key employees. The Compensation Committee also hired a qualified independent compensation and benefits specialist (independent expert) to review, analyze and provide benchmarking data for the total compensation and benefits packages of officers and key employees. Appropriate comparability data was obtained from the independent experts, i.e., total economic benefits paid by similarly situated organizations (both taxable and tax-exempt) for similar job responsibilities. The Committee's written records include the (1) terms of the arrangement with the disqualified person (including the date the arrangement was approved); (2) a list of members present during the debate on the transaction (and how the members voted when it was approved); and (3) a description of the comparable data relied on by the Committee. Key deliberations of the Committee are also documented in minutes which are approved at the next Committee meeting.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART VI, Section B, Line 16B</FormAndLineReferenceDesc>
        <ExplanationTxt>While Satellite Healthcare, Inc. has not adopted a written policy or procedure requiring steps be taken to safeguard its tax-exempt status when entering into Joint Venture agreements, by practice, it only enters into such agreements where 1) Satellite Healthcare, Inc. is the managing partner and 2) specific language has been added to the Joint Venture agreement which states that the Joint Venture will follow Satellite Healthcare, Inc.'s charitable mission and remain in-line with those principles. An example of the typical language used is as follows: Section 1.2 Charitable Purposes. The LLC and the Center shall at all times be operated and managed in a manner that furthers the charitable and community-based healthcare purposes, mission, vision and values of Satellite. The LLC and the Center shall be operated and managed in a manner that: (a) provides access to patient care services based on medical necessity, without regard to characteristics such as a person's race, religion, creed, national origin, gender, age, sexual orientation, physical or mental disability, payor source or ability to pay; (b) establish, maintain and communicate its financial assistance policies and procedures for the Center that are consistent with Satellite's policies and procedures; (c) provides access to patient care services to individuals covered by Medicare, Medicaid/Medi-Cal and other federal and state governmental payment programs; and (d) will not, in the reasonable opinion of Satellite, on advice of Satellite's legal and/or tax counsel, cause Satellite to act other than exclusively in furtherance of its tax exempt purposes, adversely affect its exempt status under Section 501(c)(3) of the Code or cause its share of the LLC's income to be taxed as "unrelated business taxable income" within the meaning of Section 511 of the Code to the extent that such unrelated business taxable income is substantial in light of the overall operations of Satellite healthcare, inc..</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>Part VI, Section C, Line 19</FormAndLineReferenceDesc>
        <ExplanationTxt>While federal tax laws do not mandate that the organization's governing documents, conflict of interest policy and financial statements be made available for public inspection, the organization makes its financial statements available upon request.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>PART XI, Line 9, Other Changes in net assets or fund balance</FormAndLineReferenceDesc>
        <ExplanationTxt>Current Year Reclass of negative investments $ 20,642,669 Income from investment k-1s $ (2,479,627) Distributions to LLCs $ (5,067,000) income from unconsolidated jvs $ 760,503 ---------------------------------------------------------- total line 9 other changes in fund balance $ 13,856,545</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
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