2012-11-13T02:46:08-06:00 2011-12-31 KPMG LLP 55 Second Street 1400 San Francisco CA 94105 990 2011-01-01 237290564 Satellite Healthcare Inc % HARITA BAJAJ SATE 6504043600 300 Santana Row Suite 300 San Jose CA 95128 susan del bene 2012-11-06 true 4159635100 2011 2016-02-24 21:20:13Z mark burke 300 santana row suite 300 san jose CA 95128 215137816 false X www.satellitehealth.com X 1973 CA SINCE 1973, THE MISSION HAS BEEN TO MAKE LIFE BETTER FOR THOSE LIVING WITH KIDNEY DISEASE BY SUPPORTING RESEARCH, PROVIDING EDUCATION, AND ENSURING ACCESS TO CARE FOR ALL PATIENTS WITH KIDNEY DISEASE. 9 7 1456 0 3957240 3018165 0 1100 166149446 170747335 4042551 10110204 4964832 6128747 175156829 186987386 2194523 3063724 0 0 64999319 71709526 0 0 0 76319778 77395964 143513620 152169214 31643209 34818172 275414807 286342702 39453933 33610248 235960874 252732454 X SINCE 1973, THE MISSION HAS BEEN TO MAKE LIFE BETTER FOR THOSE LIVING WITH KIDNEY DISEASE BY SUPPORTING RESEARCH, PROVIDING EDUCATION, AND ENSURING ACCESS TO CARE FOR ALL PATIENTS WITH KIDNEY DISEASE. false false 112596647 166760162 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 2011 United States Renal Data System Report shows that of the 571,414 Americans who live with End Stage Renal Disease ("ESRD"), over 390,000 are treated by dialysis. Satellite Healthcare owns and operates over 50 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (WellBound) providing a variety of treatment options to our patients. In 2011, Satellite Healthcare provided over 890,000 dialysis treatments and services to over 4,800 patients in California, Texas, Indiana, Illinois, New Jersey, and Maryland. 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 information contained in Schedule O. 1710469 The Satellite Healthcare, Inc. Financial Assistance program is committed in helping low-income uninsured and underinsured individuals with kidney disease to provide them with the highest quality of life through clinical services. The Satellite Healthcare, Inc. Financial assistance program provides means to demonstrate our commitment to achieving our mission. 1647318 108833 Research: Satellite Research is conducting research in various areas directly applicable to the care of patients with ESRD. Three major areas have been chosen: 1.Cardio Vascular Disease (CVD) is the major cause of death in patients with CKD. Therefore much emphasis is focused on improving cardiovascular mortality in this patient population. Satellite Research is conducting a longitudinal study of cardiovascular biomarkers in patients undergoing hemodialysis (HD) and peritoneal dialysis (PD) to evaluate their potential in managing the risk factors in this high-risk population. 2.Home hemodialysis (HHD) is emerging as a new alternative to providing renal replacement therapy in this growing patient population. Satellite is conducting studies with newly available home hemodialysis therapies and technologies, which allow patients to be independently treated at home. 3.CKD is addressed through our WellBound centers, targeting early stage IV - CKD education in an effort to delay the onset of ESRD and improve the health literacy related to treatment modality selection. See also Community Benefit Report information contained in Schedule O. 3063724 3063724 0 Grants 3063724 3063724 0 119018158 true false false true false false false false false true false false false true true false true false false false true false false false false false true false true false false false true false false false false false false false false true true true true false false true 204 0 true 1456 true true true false false false false false false false false false X 9 7 false false false false false false false true true false false true true true true true false true true true false CA X HARITA BAJAJ 6504043600 300 SANTANA ROW SUITE 300 san jose CA 95128 X MARK BURKE 40.0 X X 943872 0 33059 NORMAN COPLON 40.0 X 226250 0 27107 BRADFORD JEFFERIES 1.0 X X 105000 0 0 JOSEPH SKOKAN 1.0 X 34500 0 0 WILLIAM J LONG 1.0 X 45000 0 0 THOMAS R WILLIAMS 1.0 X 40500 0 0 DANIEL HERLINGER 1.0 X 45000 0 0 JOHN PANETTA 1.0 X 42000 0 0 GLEN CHERTOW 1.0 X 45500 0 0 SUSAN DEL BENE 40.0 X 501687 0 32970 BRIGITTE SCHILLER MORAN 40.0 X 492003 0 33059 MARC C BRANSON 40.0 X 560442 0 33059 DR LESLIE WONG 40.0 X 369564 0 19044 MARIO L BERTUCCI 40.0 X 309229 0 19419 ROSEMARY FOX 40.0 X 467333 0 30426 SERGEY MUZA 40.0 X 328763 0 25286 ANN ROBAR 40.0 X 304225 0 30024 4860868 0 283453 107 false true false CAPITAL NEPHROLOGY ASSOCIATES PO Box 81605 AUSTIN TX 78708 medical directors 719107 SIMPSON GARRITY INNES JACUZZI 601 GATEWAY BOULEVARD SOUTH SAN FRANCISCO CA 94080 LEGAL SERVICES 357646 SAN MATEO DIALYSIS ASSOCIATES 328 ESTELLA WAY SAN MATEO CA 94403 MEDICAL DIRECTORS 297688 SANTA TERESA PHYSICIANS MEDICAL 777 NFIRST STREET SAN JOSE CA 95112 MEDICAL DIRECTOR 292395 PALO ALTO MEDICAL FOUNDATION 2350 W El Camino Real 3rd Floor MOUNTAIN VIEW CA 94040 MEDICAL DIRECTORS 286359 15 1100 1100 DIALYSIS/ANCILLARY 621400 154784551 154784551 CHARITY CARE 621400 -1710469 -1710469 JOINT VENTURE DIALYSIS CLINICS 621500 9163753 9163753 LABORATORY SERVICES 621500 2094291 2094291 LABORATORY SERVICES (ASCEND) 621500 6415209 2536869 3878340 170747335 6093910 6093910 0 14068 14068 32166724 28150430 4016294 4016294 4016294 0 0 0 MANAGEMENT FEES FROM RELATED ENTITIES 900099 6539253 6539253 INCOME (LOSS) FROM INVESTMENT K1S 900099 -424574 78900 -503474 6114679 186987386 166868995 3957240 16160051 3013724 3013724 0 50000 50000 0 3104553 79722 3024831 0 47316659 37146618 10170041 1558460 1076643 481817 15555169 10753642 4801527 4174685 3297535 877150 0 1068763 1068763 133533 850 132683 50800 50800 0 0 9059295 7155541 1903754 1001948 3517 998431 1002322 587065 415257 0 0 8201552 7835320 366232 1205308 327127 878181 0 55273 7940 47333 195260 195260 0 9138645 4719474 4419171 1222770 1086924 135846 MEDICAL & OTHER SUPPLIES 37506720 36903925 602795 BAD DEBT 1927116 1927116 INCOME TAX 1441815 69960 1371855 EQUIPMENT RENTAL & MAINTENANCE 1215762 714095 501667 2969082 2261420 707662 152169214 119018158 33151056 0 20492319 20150499 23061350 26412625 0 0 20851444 23736235 250000 200000 0 0 0 0 1394541 1172951 1780600 2728777 94077893 51591623 38888250 42486270 116862957 119354548 3329682 2718756 0 0 38317290 38169687 10186374 9212354 275414807 286342702 22537305 21952680 500000 500000 0 0 0 0 0 0 0 0 15084755 10000008 0 0 1331873 1157560 39453933 33610248 X 235960874 252732454 0 0 0 0 235960874 252732454 275414807 286342702 X 34818172 -18046592 X false true true X false X Satellite Healthcare Inc.(SHI) does not meet the definition of a hospital for the purpose of Schedule H. SHI is not required to be licensed, registered, or similarly recognized by the state as a hospital, therefore a Schedule H is not required to be reported. false false false false false false false false true 50800 50800 false PART II-B, LINE 1I Satellite Healthcare Inc. is a member of various medical associations. Line 1i represents the portion of membership dues allocable to lobbying activities. 12595571 6548875 6046696 31068874 15872600 15196274 46488000 27422953 19065047 3925448 1747195 2178253 42486270 0 DEFERRED AMORTIZATION 657737 DEFERRED RENT 499823 1157560 ASC 740 Part XIV The Company has evaluated its current tax positions and has concluded that as of December 31, 2011 and 2010, the Company does not have any significant uncertain tax position for which a reserve would be necessary. true North America 0 0 Grantmaking Research 50000 0 0 0 0 50000 50000 North America REASERCH 50000 check 0 N/A N/A 1 true false false true false false Schedule F, part 1, line 1 Research grantees are selected by Satellite Healthcare's Scientific Advisory Board. By November 30 of each calendar year, the principal investigator must send 1) a two page abstract summarizing the progress of the funded research, and 2) an updated list of all current and pending support, including specific aims, key personnel, direct and indirect budget costs, and other pertinent information. Continued funding will be contingent upon the Scientific Advisory Board's satisfaction regarding the progress of the funded research and lack of duplication between Satellite research funding and funding from other sources. The final payment will be contingent upon the principal investigator complying with all conditions of the award. Satellite Healthcare Inc. sponsors an Annual Symposium each year. The purpose of this symposium is to provide a forum for researchers supported by the extramural grants program to share their findings with peers and members of the Scientific Advisory Board, and receive constructive feedback, and participate in a free exchange of ideas. To this end, each grant recipient must commit to attend the Annual Symposium in its entirety and incorporate their new findings into a lecture that covers progress in their field of interest. Failure of the Principal investigator or designee to attend the Annual Symposium may result in forfeiture of continued funding. true ALBANY COLLEGE OF PHARMACY AND HEALTH SERVICES 106 NEW SCOTLAND AVENUE OB115 ALBANY NY 12208 141423161 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF CALIFORNIA SAN DIEGO 9500 GILMAN DRIVE MOO634 LA JOLLA CA 920930634 956006144 501(c)(3) 50000 0 N/A N/A RESEARCH BAYLOR COLLEGE OF MEDICINE ONE BAYLOR PLAZA ALKEKE N250 HOUSTON TX 77030 741613878 501(c)(3) 50000 0 N/A N/A RESEARCH BETH ISRAEL DEACONESS MEDICAL CENTER DIVISION OF DANA 517 330 BROOKLINE BOSTON MA 02215 042103881 501(c)(3) 50000 0 N/A N/A RESEARCH BRIGHAM AND WOMEN'S HOSPITAL MRB-4 75 FRANCIS STREET BOSTON MA 02115 042312909 501(c)(3) 50000 N/A N/A RESEARCH DUKE UNIVERSITY 2424 ERWIN ROAD STE 1103 HOCK PLAZ DURHAM NC 27705 560532129 501(c)(3) 50000 0 N/A N/A RESEARCH EMORY UNIVERSITY SUITE 24-130 LOS ANGELES CA 90095 580566256 501(c)(3) 50000 0 N/A N/A RESEARCH EMORY UNIVERSITY 1639 PEIRCE DR WMB ROOM 338 ATLANTA GA 30322 580566256 501(c)(3) 50000 0 N/A N/A RESEARCH MINNEAPOLIS MEDICAL RESEARCH FOUNDATION 914 S 8TH ST STE S-406 MINNEAPOLIS MN 55404 411677920 501(c)(3) 50000 0 N/A N/A RESEARCH UT SOUTHWESTERN MEDICAL CENTER O5323 HARRY HINGS BLVD DALLAS TX 75390 756002868 501(c)(3) 50000 0 N/A N/A RESEARCH STANFORD UNIVERSITY SCHOOL OF MEDICINE 780 WELCH ROAD SUITE 106 PALO ALTO CA 93404 946036493 501(c)(3) 50000 0 N/A N/A REASERCH TRUSTEES OF INDIANA UNIVERSITY PO BOX 66057 NDIANAPOLIS IN 462666057 356001673 501(c)(3) 50000 0 N/A N/A KIDNEY DISEASE UNIVERSITY OF PITTSBURGH SCHOOL OF MEDICINE 4401 PENN AVE RANGOS RESEARCH BUIL PITTSBURGH PA 15224 250965591 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF PENNSYLVANIA 380 S UNIVERSITY AVE HILL PAVILLIO PHILADELPHIA PA 19104 753061499 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF WASHINGTON 908 JEFFERSON ST SEATTLE WA 98104 916001537 501(c)(3) 50000 0 N/A N/A RESEARCH YALE UNIVERSITY SCHOOL OF MEDICINE PO BOX 1873 NEW HAVEN CT 065208029 060646973 501(c)(3) 50000 0 N/A N/A RESEARCH BETH ISRAEL DEACONESS MEDICAL CENTER C/O JOHN DANZIGER 185 PILGRAM ROAD BOSTON MA 02215 042103881 501(c)(3) 50000 0 N/A N/A RESEARCH AMERICAN KIDNEY FUND 6110 EXECUTIVE BLVD ROCKVILLE MD 20852 237124261 501(C)(3) 1945047 0 N/A N/A PATIENT ASSISTANCE STANFORD UNIVERSITY SCHOOL OF MEDICINE 2700 SAND HILL ORAD MENLO PARK CA 94025 946036493 501(C)(3) 550000 0 N/A N/A RESEARCH NATIONAL KIDNEY FOUNDATION 131 STEUART ST STE 520 SAN FRANCISCO CA 94105 946130713 501(C)(3) 153621 0 N/A N/A KIDNEY DISEASE 20 0 Schedule I, part I, line 2 Research grantees are selected by Satellite Healthcare's Scientific Advisory Board. By November 30 of each calendar year, the principal investigator must send 1) a two page abstract summarizing the progress of the funded research, and 2) an updated list of all current and pending support, including specific aims, key personnel, direct and indirect budget costs, and other pertinent information. Continued funding will be contingent upon the Scientific Advisory Board's satisfaction regarding the progress of the funded research and lack of duplication between Satellite research funding and funding from other sources. The final payment will be contingent upon the principal investigator complying with all conditions of the award. Satellite Healthcare Inc. sponsors an Annual Symposium each year. The purpose of this symposium is to provide a forum for researchers supported by the extramural grants program to share their findings with peers and members of the Scientific Advisory Board, and receive constructive feedback, and participate in a free exchange of ideas. To this end, each grant recipient must commit to attend the Annual Symposium in its entirety and incorporate their new findings into a lecture that covers progress in their field of interest. Failure of the Principal investigator or designee to attend the Annual Symposium may result in forfeiture of continued funding. X X X X false false true false false false false false false MARK BURKE 458349 0 396139 0 89384 0 14700 0 18359 0 976931 0 0 0 NORMAN COPLON 225014 0 0 0 1236 0 13575 0 13532 0 253357 0 0 0 MARC C BRANSON 302204 0 237490 0 20748 0 14700 0 18359 0 593501 0 0 0 SUSAN DEL BENE 250195 0 214183 0 37309 0 14700 0 18270 0 534657 0 0 0 BRIGITTE SCHILLER MORAN 311267 0 168063 0 12673 0 14700 0 18359 0 525062 0 0 0 MARIO L BERTUCCI 176804 0 112885 0 19540 0 11815 0 7604 0 328648 0 0 0 ROSEMARY FOX 253002 0 185980 0 28351 0 14700 0 15726 0 497759 0 0 0 SERGEY MUZA 197311 0 119849 0 11603 0 12267 0 13019 0 354049 0 0 0 ANN ROBAR 181741 0 102712 0 19772 0 12374 0 17650 0 334249 0 0 0 DR LESLIE WONG 257885 0 100000 0 11679 0 0 0 19044 0 388608 0 0 0 Phantom Option Plan Schedule J Question 4c The company established a Phantom Option Plan under which it awarded phantom stock units to certain members of management for performance resulting in increased value of the company. The award value of the units was determined by the performance of the company in the year prior to a vesting event. The vesting dates for units issued in 2007 are January 1, 2009, 2010, 2011, and 2012; the units vest 25% on each vesting date. In april 2009 the company elected to terminate the phantom option plan. No additional units will be issued; however the 445,370 units awarded in 2007 will continue to be paid out according to the stated vesting schedule. The value of the units that become vested will be recognized as expense upon each of the future vesting dates. Plan participants include: Susan Del Bene, Ann Robar, Sergio Fernandez, Mark Burke, Marc Branson, Rosemary Fox, Sergey Muza, and Mario Bertucci. Amounts Paid under the plan were as follows: Mark Burke $173,428 Marc Branson $100,289 Susan Del Bene $100,289 Rosemary Fox $100,289 Sergey Muza $52,327 Mario Bertucci $52,327 Ann Robar $52,327. Brigitte S Moran X 250000 200000 false true true 200000 - PART VI, section B, line 11B 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. PART VI, SECTION B, LINE 12 C 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. PART VI, SECTION B, LINE 15 For 2011 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. PART VI, SECTION B, LINE 16b While Satellite Healthcare, Inc. has not adopted a written policy or procedure requiring steps be taken to safeguard it's 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. Part VI, Section c, line 19 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. 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: Innovation, Community, Accountability, Respect, Excellence 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 2011 United States Renal Data System Report1 shows that of the 571,414 Americans who live with ESRD, almost 70 percent (398,861) are treated by dialysis services. www.usrds.org/adr.htm SATELLITE HEALTHCARE Satellite Healthcare is built on a legacy spanning more than three and 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 50 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 2011, Satellite Healthcare provided almost 890,000 dialysis treatments and services to more than 4,800 patients in California, Texas, Indiana, Illinois, New Jersey and Maryland. 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 KidneysDoThat.org 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 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 underinsured 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 2011, Satellite Healthcare provided more than $3.3 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. Donations are accepted for an individual Satellite Dialysis or WellBound Center's Patient Trust Fund. Individuals can make a tax-deductible donation to the Patient Trust Fund. Additional funding comes from donations from the National Kidney Foundation (NKF), private companies, Satellite staff, medical directors and referring physicians. The following are examples of how this program was utilized in 2011: o Purchasing of household essentials and nutritional supplements o Providing funds for medical transportation o Assistance with utility and phone bills Each Satellite Dialysis and WellBound facility has access to a Patient Trust Fund which is initially funded by Satellite Healthcare at the beginning of each year. AMERICAN KIDNEY FUND The American Kidney Fund (AKF) was founded in 1971 to help a single individual with kidney failure pay for dialysis. Today, AKF is the leading source of direct financial aid to chronic kidney disease patients across the nation. In 2011, the American Kidney Fund provided treatment-related financial assistance to more than 101,000 dialysis patients nationwide. Satellite Healthcare supports the AKF with regular annual donations to support its programs. SATELLITE HEALTHCARE CHILDREN'S SCHOLARSHIP FUND Satellite Healthcare Children's Scholarship Fund was created to assist the children of our employees achieve their goals of higher education. In 2011, Satellite Healthcare awarded 10 scholarships from this fund. Our Children's Scholarship Fund rewards and assists in the education of many of the deserving children of our talented employees. By supporting our future leaders during their educational development, we will contribute to a better future for all. In recognition of our employees we offer this benefit of $500 to ten deserving children for both the Spring and Fall terms. These scholarships are awarded for full-time undergraduate study at any accredited two- or four-year college or university. Recipients are selected based on academic record, demonstrated leadership, participation in school and community activities, honors, work experience, and goals and aspirations as stated in the 500-word essay component of the application. The Satellite Healthcare Children's Scholarship Fund awarded $5,000 for the Spring term and $5,000 for the Fall term in 2011. INTERNSHIPS Satellite provides a number of internship opportunities for nurses studying for careers in nephrology. These internships were created to support our clinical ladder model from PCT to RN careers. In our centers, interns receive the mentorship of highly experienced nephrology nurses. They are exposed to the continuum of CKD patient treatment options and develop the experience and knowledge to achieve their career goals of becoming professional nephrology nurses. THE NORMAN S. COPLON/SATELLITE HEALTHCARE PROFESSORSHIP IN MEDICINE Satellite Healthcare has honored its founder, Norman S. Coplon, MD, with an endowed chair at Stanford University School of Medicine. A total gift of $5 million was granted from 2007-2011. The Norman S. Coplon/Satellite Healthcare Professorship in Medicine was established on June 12, 2008 with a gift from Satellite Healthcare, which Dr. Coplon founded in 1973 as a not-for-profit organization. His vision was to fulfill the growing need for dialysis services as well as to fund research and provide education for patients with end stage renal disease (ESRD). The company aims to advance the standard of chronic kidney disease care while optimizing patient wellness and quality of life. Satellite Research The mission of Satellite Research is to stimulate, support and carry out research with emphasis on improving clinical outcomes in patients with kidney disease. Our research is guided by an independent Scientific Advisory Board of leading researchers and our Satellite Healthcare Board of Directors. Satellite Research is conducting research in various areas with the aim to directly improve the care of patients with ESRD. The primary focus of Research has been directed toward the following areas. 1. Home dialysis therapies allow for a more independent and flexible schedule of renal replacement therapy, thereby allowing the patients to achieve full rehabilitation for active lives. Peritoneal dialysis has been available since the 1980s and home hemodialysis (HHD) has emerged over the last few years as a new alternative for providing renal replacement therapy to the growing patient population. As of 2007, the literature about the frequency of home hemodialysis is limited. Offering a range of frequency from every other day to four and six times per week, as well as nightly, allows the study of clinical and laboratory parameters with special emphasis on adequacy, anemia and phosphate management, quality of life, medication patterns, and removal of middle molecules. Internal studies are designed to help evaluate various schedules for delivery of this therapy. Clinical concerns of adequate dialysis as well as lifestyle concerns and resulting quality of life are critical in establishing therapies which allow as many patients as possible to undergo this type of renal replacement therapy. 2. CKD is addressed earlier through our WellBound centers, targeting early stage-4 CKD education in an effort to delay the onset of ESRD and improve the health literacy related to treatment modality selection. Of the patients participating in CKD options education, approximately 40 percent choose a home treatment modality, more than four times the national average. Research to study the opportunities and barriers existing in the current system of ESRD care delivery is vital to allow patients to benefit from the advantages home therapies provide for patients. 3. Patients suffering from ESRD have multiple co-morbidities and it has become evident that addressing these co-morbidities is vital for improving outcomes. Depression has been identified as a significant burden in this patient population and studies are aimed at evaluating improved screening for the disease and its subsequent treatment. 4. While in-center hemodialysis therapy has been the standard of care for more than 30 years, optimization of this modality based on new data and concepts is critical for improvement of care and patients' wellbeing. Hypertension and fluid overload are a major problem in patients undergoing hemodialysis. Intradialytic weight gain is thought to directly influence both blood pressure and the adverse events that occur during dialysis therapies. The importance of salt intake is well recognized in this respect; however, the emphasis has always focused on salt intake by patients when not on dialysis. Satellite Research is in the process of shedding some light on current dialysis prescriptions and their potential impact on these issues. 5. Studies to optimize the Na dialysate prescriptions with individualized Na dialysate have been conducted in patients undergoing in-center nocturnal HD and are exposed to dialysate sodium for a prolonged period of time. Furthermore, collaboration with colleagues at Stanford's Department of Nephrology creates a strong basis for mutually beneficial and complementary research studies. All research projects are aimed at improving outcomes and quality of life for patients on dialysis. Results of these research projects have been presented at a variety of national meetings, including the American Society of Nephrology meeting (ASN), the Annual Dialysis Conference (ADC), the Annual Nephrology Nurses Association (ANNA) and the National Kidney Foundation (NKF) meeting. CONTRACT RESEARCH An integral part of Satellite 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. NORMAN S. COPLON EXTRAMURAL GRANT PROGRAM Satellite Healthcare's extramural grant program is one of the nation's largest private research grant programs focused on chronic kidney disease. Grant awards are given to individuals and institutions engaged in promising kidney disease research in the United States and Canada. Approximately one-third of the awards are for basic science research, with the remaining two-thirds aimed at applied science. Each year, Satellite Healthcare funds approximately 24 grants totaling nearly $1,200,000. As of 2011 nearly $10,000,000 has been granted, supporting more than 40 different research projects in the U.S. and Canada. 2011 NORMAN S. COPLON EXTRAMURAL GRANT RECIPIENTS o Maryam Afkarian University of Washington Generating a candidate biomarker list for type 1 diabetic kidney disease o Massimo Attanasio UT Southwestern Medical Center Role of hedgehog signaling in kidney apoptosis and fibrosis o Mitsi Blount Emory University School of Medicine The role of PKCa in lithium-induced nephrogenic diabetes insipidus o Wai Cheung University of California San Diego The impact of ghrelin on nutrition and cardiovascular mortality in chronic kidney disease o John Danziger Beth Israel Deaconess Medical Center The importance of vitamin K in chronic kidney disease o Jacqueline Ho University of Pittsburgh School of Medicine Defining the role of microRNAs in the regulation of podocyte structure and function OPTIMAL START There are many essential components which contribute to a positive dialysis experience and better outcomes for ESRD patients. These factors include improved health literacy about ESRD, making the necessary dietary changes and compliance with dialysis treatments and services. Satellite's Optimal Start program is a patient empowerment program targeted at the first 90 days of a patient's experience with dialysis treatment. The program continues to enable Satellite Healthcare to work closely with new patients to provide them the best opportunity for successful dialysis treatment. The Optimal Start staff ensures that patients understand the importance of dialysis treatment. Patients also are educated on related health conditions prevalent in ESRD patients. The added one-on-one support for the first 90 days is one way Satellite is able to assist and educate new patients about healthy ways of living and treating their disease. During the first 90 days the program provides interventions: o To assist, support, and educate patients who have chosen in-center hemodialysis as the modality to treat their kidney failure and to assure that they have a full understanding of the other options available to them should they decide to make a change o To reduce hospitalizations and missed dialysis treatments by providing understanding of the importance of being compliant with their new prescription drug therapy, dietary changes and adherence to a schedule for treatment o To monitor patient Clinical Performance Measures (CPM) to see that they are within the target range and to ensure a better state of health during the first 90 days o To foster a team approach by engaging everyone involved with the patient's care in the Optimal Start process, thus giving them the opportunity to better understand how each person's discipline impacts the success of the patient's ability to adapt to stage-5 kidney failure The Optimal Start program's goal is to achieve the best possible outcomes for new patients. Better Life Wellness and Renal Replacement Therapy Options Education Through the WellBound Centers of Excellence, Satellite Healthcare provides comprehensive dialysis options education programs as a way to improve the clinical and quality of life outcomes of CKD patients. These programs are designed as an adjunct to the care provided by community nephrologists and are focused in two specific areas: CKD wellness education and renal replacement therapy education. Studies have shown that pre-dialysis education affects the involvement of CKD patients in their healthcare. A patient that is well-versed in the details of CKD is more likely to establish behaviors that are consistent with maintaining their health and deferring disease progression. This can take the form of embracing exercise, altering diets or monitoring and addressing important contributors to their disease. At the same time, increasing a patient's health literacy at an earlier stage also helps them to delay their need for dialysis therapy. WellBound's Better LIFE wellness education programs cover a variety of key topics relevant to CKD patients, including hypertension management, exercise, nutrition, stress reduction and cardiovascular risk assessment. Patients who take part in these classes have greater health literacy and are more engaged in their care, better prepared for choosing and starting a dialysis therapy, and more able to maintain a healthy lifestyle. When it comes to selecting a treatment modality, WellBound provides CKD patients with the education so that they, in collaboration with their physicians, can make informed decisions regarding their dialysis options. By proactively preparing patients to make educated therapy decisions, Satellite Healthcare aims to reduce the persistently high rate of patients who begin dialysis in an emergency hospital setting. WellBound's renal replacement therapy education programs expose patients to all treatment options including transplant, in-center hemodialysis and self-care therapies. Satellite Advocacy Satellite Healthcare actively participates in a number of state and federal coalitions to better understand and provide input on issues related to the kidney community. In October of 2010, the Centers for Medicare and Medicaid Services released their final rule for the ESRD Prospective Payment System (PPS) as required by the Medicare Improvements for Patients and Provider Act of 2008 (MIPPA). Throughout 2011, Satellite Healthcare met with our elected officials and their staff to discuss issues and concerns in the final rule. In 2011, Satellite Healthcare also participated in meetings with industry advocacy groups and state and federal elected officials, discussing a variety of topics, including: o Financial and operational concerns regarding oral drugs in the ESRD bundled payment system effective January 2014 o Cost report reform, patient case mix and co-morbidity conditions, and quality improvement performance (QIP) measurements o Continued education and awareness of advantages of home dialysis or more frequent dialysis for our patients o Issues specifically related to smaller non-profit dialysis providers, the focus of the newly formed Non-Profit Integrated Care Coalition o ESRD and Health Care Exchanges As a not-for-profit organization, it is essential that we inform and educate state and federal elected officials and government agencies about issues impacting our patients. SUPPORT OF THE NATIONAL KIDNEY FOUNDATION Satellite Healthcare historically has been a leading supporter of the National Kidney Foundation (NKF). The NKF has been one of the key drivers in improving the quality of care for CKD patients in the United States. Our donations have been used for a number of NKF programs and activities, including promoting basic research through the NKF grant program, sponsoring major clinical practice guidelines, and playing an integral role in the Kidney Early Evaluation Program (KEEP). Finally, Satellite Healthcare was the primary sponsor of the Kidney Disease Outcomes Quality Initiative (K/DOQI), which provides evidence-based clinical practice guidelines developed by volunteer physicians and healthcare providers for all phases of kidney disease and related complications, from diagnosis to monitoring and management of cardiovascular guidelines which are widely used in the dialysis community today. Throughout our 38 years of service, Satellite has donated more than $2 million to NKF national and state programs. PART XI, LINE 5 Other Changes in Net Assets K-1 revenue not included on books (24,269,117) Net distributions to unconsolidated entities 12,874,730 Change in Unrealized Gain/Loss ( 5,445,196) Write Off Investment in Wellbound Fredrick ( 410,293) Write Off Investment in Satellite Capital ( 796,716) -------------- Total Change (18,046,592) HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:MARK BURKE TITLE:SECRETARY & CEO HOURS:10 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:SUSAN DEL BENE TITLE:CFO HOURS:10 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BRIGITTE SCHILLER MORAN TITLE:Chief Medical Officer HOURS:10 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:MARC C BRANSON TITLE:EVP DIALYSIS HOURS:10 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DR. 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