2011-11-09T20:42:56-06:00 2010-12-31 KPMG LLP 55 Second Street 1400 San Francisco CA 94105 990 2010-01-01 237290564 Satellite Healthcare Inc SATE 6504043600 300 Santana Row Suite 300 San Jose CA 95128 Susan Del Bene 2011-11-09 4159635100 2010 2016-03-07 17:11:31Z mark burke 300 santana row suite 300 san jose CA 95128 201267999 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. 10 8 1249 0 10381847 8960212 4489 0 154293609 166149446 -22092571 4042551 4414634 4964832 136620161 175156829 1814897 2194523 0 0 62464483 64999319 0 0 0 71698131 76319778 135977511 143513620 642650 31643209 261774421 275414807 45342546 39453933 216431875 235960874 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 106699519 0 154399789 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 2010 United States Renal Data System Report shows that of the 547,982 Americans who live with End Stage Renal Disease ("ESRD"), over 375,000 are treated by dialysis and over 158,000 have received a kidney transplant. Satellite Healthcare owns and operates over 49 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (WellBound) providing a variety of treatment options to our patients. In 2010, Satellite Healthcare provided over 815,000 dialysis treatments and services to over 4,400 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. 1082952 0 0 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. 2194523 2194523 0 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. 2268037 0 1277524 Other program service activities - see community benefit report in Schedule O 2268037 0 1277524 112245031 true false false true false false false false false true false false false true true false true false false false false 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 203 0 true 1249 true true true false false false false false false false false false X 10 8 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 864521 0 31215 NORMAN COPLON 40.0 X 226250 0 27763 BRADFORD JEFFERIES 1.0 X X 75000 0 0 BRIAN PEREIRA MD 1.0 X 10500 0 0 JOSEPH SKOKAN 1.0 X 37500 0 0 WILLIAM J LONG 1.0 X 43500 0 0 RICHARD WAUGH PHD 1.0 X 45000 0 0 DANIEL HERLINGER 1.0 X 45000 0 0 JOHN PANETTA 1.0 X 40553 0 0 GLEN CHERTOW 1.0 X 22500 0 0 SUSAN DEL BENE 40.0 X 459395 0 31126 MARC C BRANSON 40.0 X 515506 0 31215 BRIGITTE SCHILLER MORAN 40.0 X 402705 0 31215 MARIO L BERTUCCI 40.0 X 285816 0 17783 ROSEMARY FOX 40.0 X 434918 0 28972 SERGEY MUZA 40.0 X 306169 0 23440 ANN ROBAR 40.0 X 273629 0 29724 4088462 0 252453 105 false true false CAPITAL NEPHROLOGY ASSOCIATES PO Box 81605 AUSTIN TX 78708 medical directors 670906 SAN MATEO DIALYSIS ASSOCIATES 328 ESTELLA WAY SAN AMTEO CA 94403 MEDICAL DIRECTORS 322125 STAEUR CONSTRUCTION PO Box 19262 LOS ANGELES CA 90071 CONSTRUCTION 285423 PALO ALTO MEDICAL FOUNDATION 2751 RESEARCH PARK DRIVE SOQUEL CA 95073 MEDICAL 230154 PAUL HASTINGS JANOFSKY WALKER L 515 SOUTH FLOWER STREET LOS ANGELES CA 90070 LEGAL SERVICES 202701 11 0 DIALYSIS/ANCILLARY 621400 147375092 147375092 CHARITY CARE 621400 -1082952 -1082952 JOINT VENTURE DIALYSIS CLINICS 621500 6260932 6260932 LABORATORY SERVICES 621500 13596374 3124241 10472133 166149446 1843706 1843706 0 36973 36973 28310015 26111170 2198845 2198845 2198845 0 0 0 MANAGEMENT FEES FROM RELATED ENTITIES 900099 5362710 5362710 INCOME (LOSS) FROM INVESTMENT K1S 900099 -434851 -90286 -344565 4927859 175156829 155677313 10381847 9097669 2194523 2194523 0 0 0 2506545 0 2506545 0 0 43939528 35596358 8343170 0 1434835 1008737 426098 0 13288298 9466957 3821341 0 3830113 3086069 744044 0 0 500302 0 500302 0 369778 66658 303120 0 53867 0 53867 0 0 6042335 3414996 2627339 0 757695 689 757006 0 611258 323759 287499 0 0 0 8318598 7587970 730628 0 906277 285876 620401 0 0 0 330858 -45509 376367 0 0 6975976 3836131 3139845 0 1266271 1040953 225318 0 BAD DEBT 1829692 1829692 0 0 INCOME TAX EXPENSE 4351040 40590 4310450 0 MEDICAL SUPPLIES 40217706 39713705 504001 0 JANITORIAL EXPENSE 1097413 1086177 11236 0 OTHER TAXES & LICENSES 550656 528103 22553 0 2140056 1182597 957459 0 143513620 112245031 31268589 0 10942230 20492319 22227725 23061350 20996344 20851444 250000 250000 5629063 1394541 2290206 1780600 82065207 43176957 29579454 38888250 95934672 116862957 24118209 3329682 38487328 38317290 11319190 10186374 261774421 275414807 18469245 22537305 1465630 500000 503397 480965 20169500 15084755 4734774 850908 45342546 39453933 X 216431875 235960874 216431875 235960874 261774421 275414807 X 31643209 -12114210 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 true 53867 false false 53867 false 10075571 6202866 3872705 28896020 14047182 14848838 37113497 20971504 16141993 5980119 1955405 4024714 38888250 0 REFUNDABLE SERVICE FEES 0 DEFERRED AMORTIZATION 850908 OTHER LIABILITIES 0 850908 FIN 48 Part XIV The Company has evaluated its current tax positions and has concluded that as of December 31, 2010 and 2009, the Company does not have any significant uncertain tax position for which a reserve would be necessary. true BAYLOR COLLEGE OF MEDICINE 1709 DRYDEN ROAD HOUSTON TX 77030 741613878 501(c)(3) 150000 0 N/A N/A RESEARCH DAVID GEFFEN SCHOOL OF MEDICINE UCLA 900 Veteran Ave Ste 24-130 LOS ANGELES CA 90095 954085811 501(c)(3) 50000 0 N/A N/A RESEARCH EMORY UNIVERSITY 1639 PEIRCE DRIVEWMB ROOM 338 ATLANTA GA 30322 580566256 501(c)(3) 50000 0 N/A N/A RESEARCH MOUNT SINAI SCHOOL OF MEDICINE 1 Gustave L Levy Place NEW YORK NY 10029 136171197 501(c)(3) 50000 0 N/A N/A RESEARCH STANFORD UNIVERSITY SCHOOL OF MEDICINE 780 Welch Rd Ste 106 PALO ALTO CA 94304 946036493 501(c)(3) 100000 0 N/A N/A RESEARCH UNIVERSITY OF MISSOURI CHILDREN'S MERCY HOSPITAL 2401 GILLHAM ROAD KANSAS CITY MO 64108 440605373 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF PITTSBURGH SCHOOL OF MEDICINE 3550 Terrace St PITTSBURGH PA 15261 943079432 501(c)(3) 50000 0 N/A N/A RESEARCH DUKE UNIVERSITY 2424 Erwin Rd Ste 1103 Hock Plaza DURHAM NC 27705 560532129 501(c)(3) 50000 0 N/A N/A RESEARCH BETH ISRAEL DEACONESS MEDICAL CENTER 330 Brookline Ave BOSTON MA 02215 042103881 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF PENNSYLVANIA 380 S UNIVERSITY AVE PHILADELPHIA PA 19104 753061499 501(c)(3) 50000 0 N/A N/A RESEARCH AMERICAN KIDNEY FUND 6110 EXECUTIVE BLVD ROCKVILLE MD 20852 237124261 501(c)(3) 1037341 0 N/A N/A PATIENT ASSISTANCE NATIONAL KIDNEY FOUNDATION 131 STEUART STREET STE 520 SF CA 94105 946130713 501(c)(3) 122150 0 N/A N/A KIDNEY DISEASE 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 BRIGHAM AND WOMEN'S HOSPITAL 75 Francis Street BOSTON MA 02115 042312909 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 TRUSTEES OF INDIANA UNIVERSITY PO Box 66507 INDIANAPOLIS IN 462666057 356001673 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF COLORADO DENVER 13001 E 17th Place AURORA CO 80045 846049811 501(c)(3) 50000 0 N/A N/A RESEARCH UNIVERSITY OF WASHINGTON C/O YOSHI HALL SEATTLE WA 981956521 943079432 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 ACADEMY OF POST GRADUATE HEALTHCARE EDUCATION 2401 LEMONE INDUSTRIAL RD DE 345 COLUMBIA MO 65212 431682002 501(c)(3) 10000 0 N/A N/A HEALTHCARE EDUCATION MEDICAL EDUCATION INSTITUTE INC 414 Donofrio Dr Ste 200 MADISON WI 53719 391739731 501(c)(3) 10000 0 FMV N/A HEALTHCARE EDUCATION 21 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 particiapte 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 Anuual 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 393914 0 12258 0 14700 0 16515 0 895736 0 0 0 NORMAN COPLON 225014 0 0 0 1236 0 13575 0 14188 0 254013 0 0 0 SUSAN DEL BENE 240570 0 184090 0 34735 0 14700 0 16426 0 490521 0 0 0 BRIGITTE SCHILLER MORAN 280490 0 97462 0 24753 0 14700 0 16515 0 433920 0 0 0 MARIO L BERTUCCI 170551 0 97098 0 18167 0 10897 0 6886 0 303599 0 0 0 ROSEMARY FOX 242697 0 164243 0 27978 0 14700 0 14272 0 463890 0 0 0 SERGEY MUZA 190719 0 103894 0 11556 0 11778 0 11662 0 329609 0 0 0 ANN ROBAR 167822 0 88240 0 17567 0 11503 0 18221 0 303353 0 0 0 MARC C BRANSON 289800 0 205635 0 20071 0 14700 0 16515 0 546721 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 $136,284 Marc Branson $78,810 Susan Del Bene $78,810 Rosemary Fox $78,810 Sergey Muza $41,120 Mario Bertucci $41,120 Ann Robar $41,120 Brigitte S Moran X 250000 250000 false true true 250000 - PART VI, section B, line 11B PART VI, SECTION B, LINE 11 The organization's VP of Finance worked closely with the outside accounting firm it engaged to prepare the return and the final draft of Form 990 was also reviewed by the Controller prior to providing the draft to the audit committee chair for his review. A copy of the return was provided to the entire voting Board before the return was filed. 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 the 2010 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 develops, 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 hires 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 is 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. Part VII, Section A, Line 1A Average hours per week spent on related organizations by officers, trustees, and highly compensated employees: Mark Burke: 10 hours Susan Del Bene: 10 hours Marc C. Branson: 10 hours Brigitte Schiller Moran: 10 hours Mario L. Bertucci: 10 hours Rosemary Fox: 10 hours Sergey Muza: 10 hours Ann Robar: 10 hours Community Benefit Report This Community Benefit Report provides an overview of some programs and activities that allow Satellite Healthcare to meet and to exceed our organization's heritage as a not-for-profit dialysis provider. 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 two leading causes of kidney failure. The 2010 United States Renal Data System Report shows that of the 547,982 Americans who live with End Stage Renal Disease ("ESRD"), over 375,000 are treated by dialysis services. Various factors have contributed to improved patient outcomes and have strengthened the ESRD community: - High quality dialysis services - An increase of successful kidney transplants - More effective drugs and drug therapies - The availability of more dialysis treatment options - Information gained and used by research studies - Targeted patient education efforts - Patient support groups - ESRD community advocacy Satellite Healthcare Satellite Healthcare is built on a legacy spanning over three and half decades and is recognized for our leadership in (1) achieving clinical excellence (2) delivering innovative services and therapies and (3) fostering research and charitable giving. Our goal is to enable the chronic kidney disease community to achieve clinical excellence and improved quality of life. Satellite Healthcare owns and operates 49 in-center hemodialysis facilities (Satellite Dialysis) and home dialysis training centers (Satellite WellBound) providing a variety of treatment options to our patients. In 2010, Satellite Healthcare provided over 815,000 dialysis treatments and services to over 4,400 patients in California, Texas, Indiana, Illinois, New Jersey, and Maryland 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 towards our patients and the ESRD community. A number of our programs and activities include: - Satellite Financial Assistance Program - Satellite Patient Trust Fund - Satellite Research - Norman S. Coplon Grant Program - Hans Wolf Fellowship Program - Optimal Start - Better LIFE Wellness Education and Dialysis Options Education - Satellite Advocacy - Satellite Healthcare Children's Scholarship Fund - Support of the National Kidney Foundation (NKF) - Support of the American Kidney Fund (AKF) - The Norman S. Coplon / Satellite Healthcare Professorship in Medicine 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, research, as well as state and federal level advocacy. Community benefit programs are an integral part of the Satellite culture. Satellite Community Benefit Activities and Programs Satellite Financial Assistance Program In 2010, Satellite Healthcare provided all patients the opportunity to be assessed for possible qualification for financial assistance. This was done in an effort to help reach more patients who were in need of assistance. Through direct financial assistance and organizations such as the American Kidney Fund, in 2010 Satellite Healthcare provided over $2.3 million of financial assistance to our patients. Satellite Patient Trust Fund Satellite Healthcare is aware that emergency circumstances arise for our patients that may require assistance. 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. The Satellite Patient Trust Fund has been utilized to assist patients on a case by case basis, as needed. The following are examples of how this program was utilized in 2010: - Purchasing of household essentials and nutritional supplements - Providing funds for medical transportation - Assistance with utility and phone bills 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. donations from the National Kidney Foundation (NKF), private companies, Satellite staff, medical directors and referring physicians. 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 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 towards 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 an active life. Peritoneal dialysis has been available since the 1980s and home hemodialysis (HHD) is emerging over the last few years as a new alternative to providing renal replacement therapy in 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 life-style 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 therapies. 2. CKD is addressed earlier 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. Of the patients participating in the CKD options education, approximately 40% 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 subsequent treatment. 4. While center hemodialysis therapy has been 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 well-being. Hypertension and fluid overload are a major problem in patients undergoing hemodialysis. The intradialytic weight gain is thought to be directly influencing both blood pressure and the adverse events occurring during dialysis therapies. The importance of salt intake is well recognized in this respect, however the emphasis has always focused on the salt intake by patients when not on dialysis. Satellite Research is in the process to shed some light on current dialysis prescriptions and its potential impact on these issues. 5. Studies to optimize the Na dialysate prescriptions with individualized Na dialysate have been conducted in patients undergoing nocturnal HD in center 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), and 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. Norman S. Coplon 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 2010, nearly $9,000,000 has been granted, supporting over 40 different research projects in the United States and Canada. Hans Wolf Fellowship Program Satellite Healthcare provides funding for a selected Stanford Medical Nephrology Fellow whose focus is related to CKD or ESRD. The fellow is given the opportunity to better understand the issues related to this community. Optimal Start (OS) 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. The Satellite 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 the 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. The OS programs goals is to achieve the best possible outcomes for new patients. During the first 90 days the program provides interventions: To assist, support, and educate patients who have chosen in-center hemodialysis as their modality to treat their kidney failure and to assure that they have full understanding of the other options available to them should they decide to make a change. 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. To monitor patient Clinical Performance Measure (CPM) to see that they are within the target range and to insure a better state of health during the first 90 days. To foster a team approach by engaging everyone involved with the patient's care in the OS process. Give them the opportunity to better understand how each person's discipline impacts the success of the patient's ability to adapt to stage V kidney failure. Better LIFE Wellness Education and Dialysis 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, are more engaged in their care, better prepared for choosing and starting a dialysis therapy and are 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 physician, can make an informed decision regarding their dialysis options. WellBound's renal replacement therapy education programs expose patients to all treatment options including transplant, in-center hemodialysis and self-care therapies. 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. 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. 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. 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 2010, Satellite Healthcare met with our elected officials and their staff to discuss issues and concerns in the proposed and final rule. In 2010, Satellite Healthcare participated in a number of meetings with state and federal elected officials discussing a variety of topics including: - Raising financial and operational concerns with the inclusion of ESRD specific oral only drugs in the new proposed ESRD bundled payment system. - Discussing the importance of creating a patient education initiative to increase awareness about CKD and to help patients learn self-management skills. - Providing insight on the establishment of a quality initiative or incentive program that would reward quality improvement based on measures developed in cooperation with the kidney care community. - Continued education and awareness of advantages of home dialysis or more frequent dialysis for our patients. 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 2010, Satellite Healthcare awarded 15 scholarships from this newly created 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. The Satellite Healthcare Children's Scholarship Fund awarded $5,000 for the Spring semester/term 2010 and $5,000 for the Fall semester/term 2010. In recognition of our employees we offer this benefit of $500 to ten deserving children for both the Spring and Fall semester/term. 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. 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 PCTs 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. Support of the National Kidney Foundation Satellite Healthcare historically has been a leading supporter of the National Kidney Foundation (NKF). Throughout more than 35 plus years of service, Satellite has donated more than $2 million to NKF national and state programs. 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 a major 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 cardiovascular guidelines which are widely used in the dialysis community today. 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 2009, AKF in 2009, the American Kidney Fund provided nearly $155 million in treatment-related financial assistance to more than 87,000 dialysis patients nationwide. Satellite Healthcare supports the AKF with regular annual donations to support AKF programs. 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 of $2.5 million dollar gift will be given 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 1974 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. PART XI, Line 5 Other Changes in Net Assets Less K-1 revenue not included on books (23,861,162) less other-than-temporarily impaired adj. 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