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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 26 million Americans. It is well known that hypertension and diabetes are two leading causes of kidney failure. The 2018 United States Renal Data System Report shows that over 726,331 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 2018, Satellite Healthcare provided over 1,461,076 dialysis treatments and services to over 8,050 patients in California, Texas, Indiana, Illinois, New Jersey, and ennessee. 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 2018 Satellite Healthcares dedication to patient care extends beyond the doors of our centers. As a company and as individuals, Satellite teams donate money, time, and talent to help those with kidney disease live the best, most joyful life possible. In every corner of the organization, our employees support the CKD and greater community in countless of ways. On the following pages, we invite you to learn more about specific programs Satellite Healthcare proudly sponsors in support of our patients and the communities we serve. Patient Financial Assistance No one facing CKD should also worry about how to pay for treatment and basic needs. Satellite Healthcare helps patients in need cover the cost of: o Dialysis care o Household essentials o Nutritional supplements o Urgent medical transportation o Utility and phone bills 1. Satellite Healthcare Financial Assistance Program Each patient is screened annually to learn if financial assistance is needed to cover all or part of the cost of his/her dialysis care. When needed, Satellite Healthcare social workers help patients access both Satellite Healthcare and community support resources to lighten their burden. This program provided more than $3.23 million in assistance to patients in 2018. 2. Satellite Healthcare Patient Trust Fund Funded annually by Satellite Healthcare, and with the help of tax-deductible donations from individuals and organizations, this fund helps pay for patient expenses other than direct dialysis costs. In 2018, the fund covered more than $42,000 of expenses for patients in need. 3. American Kidney Fund (AKF) Satellite Healthcare supports the AKF in their efforts to provide health insurance premium and other treatment-related financial assistance to more than 98,000 dialysis patients. In 2018, Satellite Healthcare donated more than $3.8 million dollars to help patients in need receive health care. CKD Research Satellite Healthcare research focuses on care delivery and process improvement that lead to findings that can rapidly be adopted and implemented across the CKD community. 1. Coplon Extramural Grant The Norman S. Coplon Extramural Grant Program has become one of the nation's largest private research endowments for kidney disease treatment. Since 2000, the program has funded more than $16.6 million in research to improve the lives of patients. 2018 Coplon Grant Recipients Columbia University Medical Center Stanford University Stanford University University of California, San Diego Lady Davis Institute Regents of the University of California 2. In-House Research Satellite Healthcares $3.5 million endowment supports applied pragmatic clinical research. Due to a formalized and inclusive process of topic selection, many research ideas originate with direct patient care teams at Satellite Healthcare locations. For a partial list of recently completed research efforts, visit satellitehealth.com/research. 3. Contract Research An integral part of Satellite Healthcare Research continues to be participating in phase II and III clinical trials with new promising products in the process of achieving FDA approval. Trials are chosen according to their applicability and likelihood to improve patient morbidity and mortality rates. Fundraising, Donations and sponsorships CKD Community Involvement Professionals across Satellite Healthcare departments and locations volunteer thousands of hours a year to raise awareness, promote prevention, and elevate the standard of care for dialysis patients everywhere. In 2018, Satellite Healthcare raised and donated more than $172,000 to the National Kidney Foundation (NKF). These funds, along with Satellite Healthcare volunteers, supported a number of important NKF programs including: o The Quarterly Journal Club (Nephrologist Education) o 2 sponsored, 40 physicians educated at two dinner programs in case study discussion format o 3 KEEP Healthy CKD Screening Clinics: 150,000 screened (Prevention) o Patient Education Symposiums (Patient Education), The Power of Home: 25 educated o 50th Annual Medical Symposium and CKD Workshops (Professional Education) o 110 Satellite Healthcare employees attended with 50% registrations sponsored o Annual Authors Luncheon (Fundraising Event) o 3 Pro-to-Go Scholarships for Annual Spring Clinical Meeting (Professional Development) o Kidney Health in the Community (Prevention) o CKD Education done at 11 community events o Annual National Kidney Walks (CKD Awareness and Fundraising) o More than 1250 Satellite staff members participated in 11 NKF Walks. 2. American Kidney Fund (AKF) In 2018, Satellite Healthcare donated $2.5 million in support and patient-focused education programs. o 2 health screenings (prevention) o kidney action day awareness event (prevention) 3. Home Dialysis Central Home Dialysis Central is the Internets leading information source for home dialysis information and support. In 2018, Satellite Healthcare donated $20,000 to help fulfill their mission to educate ESRD patients on dialysis modality options and support those who choose home dialysis. 4. Bay Area Association of Kidney Patients (BAAKP) BAAKPs mission is to educate and support San Francisco Bay Area people with CKD. In 2018, Satellite Healthcare contributed funding for video documentation at four, three-hour patient educational presentations, for a total of $4,400. 5. Alliance for home dialysis in 2018, Satellite Healthcare donated $10,000 to Alliance for home dialysis. 6. university of missouri for annual dialysis conference in 2018, satellite healthcare donated $32,675 to university of missouri for the annual dialysis conference. 7. other donations in 2018, satellite healthcare donated an additional $26,000 to other community recipients. Public &amp; Patient Health Education Satellite Healthcare empowers people with information on CKD prevention, modality options, and dialysis lifestyle support. 1. Local Community Health Fairs Satellite Healthcare provided funds and in-kind donations to support CKD education at more than 8 local community events in 2018. Employees donate time, expertise, and passion to staff booths, pass out flyers, and participate in health screenings. 2. Treatment Options Classes In small group settings using carefully developed communication materials. Satellite Healthcare staff helps CKD dialysis patients and their families understand treatment options. With the advice and consent of their nephrologist, this training helps patients choose a treatment modality to best fit the life they want to live. 3. Online CKD Information and Support a. KidneysDoThat.org Satellite Healthcare hosts a pre-CKD public health education website that offers simple explanations on how kidneys work and tips on how to keep them healthy. b. SatelliteHealth.com/for-patients-families Satellite Healthcares company website was built and is maintained with the express intent to provide new patients and their families with easy information and helpful links to credible sources. c. Satellite Healthcare Social Channels Satellite Healthcare uses its social channels - Facebook, Instagram and Twitter - to serve as a reliable source of CKD community news, prevention and well-being tips, and as a place to celebrate community heroes and achievements. Academic Support &amp; Training 1. Collaboration with Stanford University Satellite Healthc</Desc>
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        <Desc>Patient and Community Programs included: Research Programs: $3,575,203 Research Grants: $664,285 See the community benefit report in Schedule O for additional information.</Desc>
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        <PersonNm>FRANK E JESSE</PersonNm>
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        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>SHAMYO CHATTERJEE</PersonNm>
        <TitleTxt>CHIEF TECHNOLOGY OFFICER</TitleTxt>
        <BaseCompensationFilingOrgAmt>300331</BaseCompensationFilingOrgAmt>
        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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        <BonusRelatedOrganizationsAmt>0</BonusRelatedOrganizationsAmt>
        <OtherCompensationFilingOrgAmt>6250</OtherCompensationFilingOrgAmt>
        <OtherCompensationRltdOrgsAmt>0</OtherCompensationRltdOrgsAmt>
        <DeferredCompensationFlngOrgAmt>44751</DeferredCompensationFlngOrgAmt>
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        <NontaxableBenefitsFilingOrgAmt>10770</NontaxableBenefitsFilingOrgAmt>
        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>541376</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
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        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ESTRELLA MARIA PARKER</PersonNm>
        <TitleTxt>VP CHIEF HR OFFICER</TitleTxt>
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        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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        <OtherCompensationFilingOrgAmt>176801</OtherCompensationFilingOrgAmt>
        <OtherCompensationRltdOrgsAmt>0</OtherCompensationRltdOrgsAmt>
        <DeferredCompensationFlngOrgAmt>71844</DeferredCompensationFlngOrgAmt>
        <DeferredCompRltdOrgsAmt>0</DeferredCompRltdOrgsAmt>
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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>FRANK E JESSE</PersonNm>
        <TitleTxt>V.P REAL ESTATE &amp; FACILITIES</TitleTxt>
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      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>Schedule J, Part I, Line 4a</FormAndLineReferenceDesc>
        <ExplanationTxt>The following listed persons received payments pursuant to a severance plan providing payments for one year after termination of employment: FRANK E JESSE - $135,000 Schedule J, Part I, Line 4b Certain persons listed on Form 990 Part VII Participated in a section 457(f) nonqualified deferred compensation plan. The following listed person received payments during 2018 pursuant to that plan: Glenn a Davis - $197,868</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleJ>
    <IRS990ScheduleL documentId="IRS990ScheduleL">
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        <PersonNm>Estrella Maria Parker</PersonNm>
        <RelationshipWithOrgTxt>VP Chief Human Resources Officer</RelationshipWithOrgTxt>
        <LoanPurposeTxt>Relocation</LoanPurposeTxt>
        <LoanFromOrganizationInd>X</LoanFromOrganizationInd>
        <OriginalPrincipalAmt>225000</OriginalPrincipalAmt>
        <BalanceDueAmt>93750</BalanceDueAmt>
        <DefaultInd>false</DefaultInd>
        <BoardOrCommitteeApprovalInd>false</BoardOrCommitteeApprovalInd>
        <WrittenAgreementInd>true</WrittenAgreementInd>
      </LoansBtwnOrgInterestedPrsnGrp>
      <TotalBalanceDueAmt>93750</TotalBalanceDueAmt>
    </IRS990ScheduleL>
    <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 2018 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 principals. 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.</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 $ 31,998,241 Income from Investment K-1s $ 591,632 Distributions to LLCs $ (10,391,274) ---------------------------------------------------------- total line 9 other changes in fund balance $ 22,198,599</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleO>
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