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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 2014 United States Renal Data System Report shows that of the 636,905 Americans who live with End Stage Renal Disease ("ESRD"), over 449,342 are treated by dialysis. Satellite Healthcare owns and operates 72 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (WellBound) providing a variety of treatment options to our patients. In 2014, Satellite Healthcare provided over 1,165,640 dialysis treatments and services to over 6,297 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 Satellite Healthcare is committed to helping individuals with kidney disease achieve the highest quality of life through clinical services, research and innovation. This Community Benefit Report provides an overview of some programs and activities that allow Satellite Healthcare to meet and exceed our organization's heritage as a not-for-profit dialysis provider whose primary focus is the patient. Corporate Headquarters 300 Santana Row Suite 300 San Jose, CA 95128 650.404.3600 p. 800.357.8292 p. 650.404.3601 f. satellitehealth.com Our mission: Making life better for those living with kidney disease Our vision: To collaborate with our community partners in achieving clinical excellence and integrated care delivery to the kidney disease population Our values: o Innovation: I look for creative ways to achieve the best quality care for our patients. o Community: I am part of the Satellite family dedicated to CKD care. o Accountability: I take personal responsibility for the services we provide. o Respect: I treat others as i would like to be treated. o Excellence: I strive to do my absolute best in caring for our patients. OVERVIEW OF CHRONIC KIDNEY DISEASE AND THE END STAGE RENAL DISEASE COMMUNITY 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 the two leading causes of kidney failure. Various factors have contributed to improved patient outcomes and have strengthened the End-Stage Renal Disease (ESRD) community. o High-quality dialysis services o An increase of successful kidney transplants o More effective drugs and drug therapies o The availability of more dialysis treatment options o Information gained and used by research studies o Targeted patient education efforts o Patient support groups o ESRD community advocacy The 2014 United States Renal Data System Report shows that of the 636,905 Americans who live with ESRD, about 71 percent (449,342) are treated by dialysis services. www.usrds.org/adr.htm SATELLITE HEALTHCARE Satellite Healthcare is built on a legacy spanning more than three and a half decades and is recognized for leadership in: 1. Achieving clinical excellence 2. Delivering innovative services and therapies 3. Fostering research and charitable giving Satellite Healthcare owns and operates 72 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (Satellite WellBound), offering a variety of treatment options to our patients for their convenience. In 2014, Satellite Healthcare provided over 1,165,640 dialysis treatments and services to more than 6,297 patients in California, Texas, Indiana, Illinois, New Jersey and Tennessee. Our goal is to enable the chronic kidney disease community to achieve clinical excellence and improved quality of life. SATELLITE PHILANTHROPY As a not-for-profit dialysis provider, Satellite Healthcare is involved in a number of community benefit programs and activities that help us in fulfilling our mission toward our patients and the ESRD community. Satellite Healthcare is proud that our community benefit program includes activities that stretch across many areas of the ESRD community, including direct patient care, financial assistance for eligible patients, patient education and research, as well as state and federal level advocacy. Community benefit programs are an integral part of the Satellite culture. COMMUNITY BENEFIT ACTIVITIES AND PROGRAMS o 40 Points of Light Community Programs and Grants o KidneysDoThat.org o Social Media o Satellite Financial Assistance Program o Satellite Patient Trust Fund o American Kidney Fund o Satellite Healthcare Children's Scholarship Fund o Internships o The Norman S. Coplon/Satellite Healthcare Professorship in Medicine o Satellite Research o Contract Research o Norman S. Coplon Grant Program o Optimal Start o Better LIFE Wellness and Dialysis Options Education o Satellite Advocacy o Support of the National Kidney Foundation o Young Investigator Grant with the National Kidney Foundation 40 Points of Light 25 Local charities benefitted and received a $400 donation in support of the group's commitment to improve the lives of people in their community: o Amazing Surf Adventures o Walnut Avenue Women's Shelter o People's Grocery o Second Harvest Food Bank o NKF West Tenn. o St. Mary's Dining Room o Bay Area Association of Kidney Patients o Sacramento Food Bank o Meals at Home o Whistlestop o Through the Looking Glass o Northshore Senior Center o Second Harvest Food Bank (SMC/SCC) o McHenry House Tracy Family Shelter o Center for Human Services o Assistance League of San Jose o Round Rock Area Serving Center o Emergency Food Bank o Hospice of San Joaquin o Sacred Heart Community Service o Catholic Charities of Stockton o Kidney Kamp Foundation o Roseland School District o Friends of Kyle Library o Stepping Stone Growth Center Satellite Healthcare centers developed community programs to improve the quality of life for those in their specific community through the 40 Points of Light Grants: Wellness Expos o North Shore medical community- Skokie, IL o Diabetes Health Fair &amp; Grey Bears- Watsonville, CA o Round Rock Annual Health Fair- Austin, TX o Marin Senior Information Fair- Larkspur, CA o Family Kidney Health- Mercer, NJ Brand and Collateral Creative o Sonoma Kidney Crisis Foundation- Windsor, CA Classroom Education o Academy at Westwood High School Education Program- Austin, TX o St. Stanislaus Catholic School junior high students- Modesto, CA o Alica N. Stroud Elementary school S.M.I.L.E after school program- Modesto, CA Kidney Care packages' for homeless and/or serving time in prison o Kyle Correctional Facility- Kyle, TX o Homeless Foundation St. James Park- San Jose, CA Cooking classes or CKD friendly meal programs o Council on Aging &amp; Renal Meals on Wheels- Santa Rosa, CA o St. Mary's Dining Room- Stockton, CA o Cooking for Capitola at Culinary Arts- Santa Cruz, CA Education &amp; awareness at community events o Sutter Tracy Health Habits expo- Tracy, CA KIDNEYSDOTHAT.ORG As part of an ongoing effort to educate the public about kidney health, Satellite Healthcare developed KidneysDoThat.org, a website dedicated to kidney health information. This website explains, in easy-to-understand terms, what the kidneys do and why it is important to take care of them. It includes video and audio clips, photos, health tips and recipes. The site is updated periodically with seasonally relevant content. SATELLITE FINANCIAL ASSISTANCE PROGRAM Helping to meet the needs of the low-income uninsured and under insured is an important element of our commitment to the community. Satellite Healthcare's Financial Assistance Program provides the means for us to demonstrate our commitment to achieving our mission. Through an annual screening process, patients are given the opportunity to get financial assistance for all or part of their dialysis service bills. In 2014, Satellite Healthcare provided more than $1.9 million in financial assistance to our patients. SATELLITE PATIENT TRUST FUND Satellite Healthcare is aware that emergency circumstances arise for our patients that may require assistance. The Satellite Patient Trust Fund has been utilized to assist patients on a case by case basis, as needed. Do</Desc>
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          <USAddress>
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          <USAddress>
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          <USAddress>
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        <OtherCompensationRltdOrgsAmt>0</OtherCompensationRltdOrgsAmt>
        <DeferredCompensationFlngOrgAmt>0</DeferredCompensationFlngOrgAmt>
        <DeferredCompRltdOrgsAmt>0</DeferredCompRltdOrgsAmt>
        <NontaxableBenefitsFilingOrgAmt>0</NontaxableBenefitsFilingOrgAmt>
        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>514800</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>GARY L CELLINI</PersonNm>
        <TitleTxt>VP STRATEGIC INITIATIVES</TitleTxt>
        <BaseCompensationFilingOrgAmt>189958</BaseCompensationFilingOrgAmt>
        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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        <NontaxableBenefitsRltdOrgsAmt>0</NontaxableBenefitsRltdOrgsAmt>
        <TotalCompensationFilingOrgAmt>538777</TotalCompensationFilingOrgAmt>
        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ROSEMARY FOX</PersonNm>
        <TitleTxt>VP DIALYSIS OPERATIONS</TitleTxt>
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        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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        <TotalCompensationRltdOrgsAmt>0</TotalCompensationRltdOrgsAmt>
        <CompReportPrior990FilingOrgAmt>0</CompReportPrior990FilingOrgAmt>
        <CompReportPrior990RltdOrgsAmt>0</CompReportPrior990RltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ROBERT LUNBECK</PersonNm>
        <TitleTxt>VP OF BUSINESS DEVELOPMENT</TitleTxt>
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        <CompensationBasedOnRltdOrgsAmt>0</CompensationBasedOnRltdOrgsAmt>
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      <RltdOrgOfficerTrstKeyEmplGrp>
        <PersonNm>ANN ROBAR</PersonNm>
        <TitleTxt>VP WELLBOUND 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: Mark Burke - $206,562 Marc Branson - $272,249 Gary L Cellini - $39,867</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>Schedule J, Part I, Line 4b</FormAndLineReferenceDesc>
        <ExplanationTxt>Certain persons listed on Form 990 Part VII participated in a Section 457(f) nonqualified deferred compensation plan. During the year the following personS received a payout from the plan: Mark Burke $80,191, Gary Cellini, $37,174.</ExplanationTxt>
      </SupplementalInformationDetail>
      <SupplementalInformationDetail>
        <FormAndLineReferenceDesc>Schedule J, Part II, Line 2</FormAndLineReferenceDesc>
        <ExplanationTxt>William Long was compensated $182,000 for consulting services provided subsequent to the CEO's retirement and before the new CEO was on board. Mr. Long was also compensated $96,000 for his duties as a director and Chairman of the Board.</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleJ>
    <IRS990ScheduleL documentId="IRS990ScheduleL">
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        <PersonNm>Brigitte S Moran</PersonNm>
        <RelationshipWithOrgTxt>employee</RelationshipWithOrgTxt>
        <LoanPurposeTxt>RELOCATION LOAN</LoanPurposeTxt>
        <LoanFromOrganizationInd>X</LoanFromOrganizationInd>
        <OriginalPrincipalAmt>250000</OriginalPrincipalAmt>
        <BalanceDueAmt>50000</BalanceDueAmt>
        <DefaultInd>false</DefaultInd>
        <BoardOrCommitteeApprovalInd>true</BoardOrCommitteeApprovalInd>
        <WrittenAgreementInd>true</WrittenAgreementInd>
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      <TotalBalanceDueAmt>50000</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 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 is 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 2014 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 $17,617,169 Schedule K-1 additions $(4,078,146) Intercompany Transfers $(1,270,164) --------------------------------------------------------------------- Total changes in net assets $12,268,859</ExplanationTxt>
      </SupplementalInformationDetail>
    </IRS990ScheduleO>
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