Document:

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                                                                  EXHIBIT 10.10

                          TRANSITION SERVICES AGREEMENT

                  This TRANSITION SERVICES AGREEMENT (this "Agreement") is made
as of October 8, 1999, by and between PARACELSUS HEALTHCARE CORPORATION, a
California corporation ("PHC"), and PHC/PSYCHIATRIC HEALTHCARE CORPORATION, a
Delaware corporation ("HOLDCO").

                              W I T N E S S E T H:

                  WHEREAS, pursuant to that certain Recapitalization Agreement,
dated as of August 13, 1999, by and among PHC, PHC/CHC HOLDINGS, INC., a
California corporation, HOLDCO, PHC-SALT LAKE CITY, INC., a Utah corporation,
PARACELSUS PIONEER VALLEY HOSPITAL, INC., a Utah corporation, PIONEER VALLEY
HEALTH PLAN, INC., a Utah corporation, PHC-JORDAN VALLEY, INC., a Utah
corporation, PARACELSUS PHC REGIONAL MEDICAL CENTER, INC., a Utah corporation,
PARACELSUS DAVIS HOSPITAL, INC., a Utah corporation, PHC UTAH, INC., a Delaware
corporation, CLINICARE OF UTAH INC., a Utah corporation, and JLL HOSPITAL LLC, a
Delaware limited liability company ("JLL") (the "Recapitalization Agreement"),
the parties agreed to recapitalize Holdco following the contribution of the
Assets to Holdco and the assumption of the Assumed Liabilities by Holdco; and

                  WHEREAS, capitalized terms used herein and not otherwise
defined herein have the meanings given to such terms in the Recapitalization
Agreement; and

                  WHEREAS, PHC utilizes certain licensed software and other
products and services pursuant to (i) an agreement with the Health Services
Division of Keane, Inc. dated April 13, 1998 as amended and supplemented (the
"Keane Agreement"), (ii) an agreement with CompuLab System Corporation dated
April 30, 1998 (the "CompuLab Agreement"), and (iii) an agreement with Lawson
Software dated May 30, 1997 (the "Lawson Agreement") (the Keane Agreement,
Lawson Agreement and CompuLab Agreement, as the same may be amended,
supplemented or replaced, are collectively referred to herein as the "Services
Agreements"); and

                  WHEREAS, prior to the consummation of the transactions
contemplated by the Recapitalization Agreement, PHC provided and made available
certain data processing services and systems to the Business pursuant to the
Service Agreements; and

                  WHEREAS, Holdco desires PHC to continue to provide such data
processing services and systems in support of the Business as provided herein
and PHC is willing to continue to provide the Services on the terms and
conditions set forth herein.
<PAGE>   2
                  NOW, THEREFORE, in consideration of the premises and covenants
set forth herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, PHC and Holdco agree as follows:

                  1. Transition Services. During the term of this Agreement as
set forth in Section 5 below (the "Transition Period"), PHC shall provide, or
cause its Affiliates to provide, to Holdco and its subsidiaries the services set
forth on such Annex A (the "Services"), in the manner, at the locations and at a
relative level of service consistent with that provided by PHC or its Affiliates
to or for the benefit of the Business immediately prior to the date hereof. The
Services shall be provided from PHC's data processing center (the "Data Center")
in Houston, Texas using PHC's computer processing equipment at such site, with
the exception of the CompuLab Clinical Lab System which is operated at the
Paracelsus Davis Hospital, Inc. facility. Holdco or its Subsidiaries operating
the Business shall be responsible for (i) coding and transmitting the data (the
"Facilities Data") to be processed hereunder to the Data Center, (ii)
supervising the conversion of the Facilities Data, including financial data,
into a form that can be processed by PHC, (iii) determining whether the
Facilities have complied with applicable accounting practices, (iv) determining
whether the Facilities have complied with applicable state and federal
regulations governing financial reporting obligations; (v) verifying the
accounting of data generated by the Facilities or by PHC from other data
generated by the Facilities; (vi) maintaining prudent internal controls of
reports and data generated by the Facilities and (vii) maintaining all equipment
and all communication lines at the Facilities to the extent reasonably necessary
in connection with providing the Services. The Services used by Holdco and its
subsidiaries shall be provided, and Holdco shall pay for such Services (i) an
amount equal to actual costs to PHC (including third-party out-of-pocket costs
and PHC's reasonable internal overhead and administrative costs) of providing
such Services plus two percent (2%) (the "Service Fee") and (ii) those charges
set forth in Annex B hereto (the "Charges").

                  PHC will provide to Holdco and its subsidiaries operating the
Business, for the term of this Agreement, and to the extent necessary to utilize
the Services, a non-transferable and non-exclusive right to use the computer
software systems (the "Software") set forth in Annex A to the extent permitted
by and in accordance with the terms and conditions of the applicable Service
Agreements.

                  Holdco and its subsidiaries operating the Business shall have
no rights in the Software not expressly granted hereby, including, but not
limited to any right to: alter the Software; create derivative works; distribute
or sublicense the Software to third parties; incorporate additional software
into the Software at the operating system level; incorporate the Software into
any publicly available database; reproduce the Software; or use the software for
any purpose other than as specified by this Agreement.

                  From time to time PHC may, but is not obligated to, update the
Software at no additional charge to Holdco. In such event, Holdco will
discontinue use of the

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then-current version of the Software within 60 days after its receipt of the
updated Software and substitute the updated version of such Software in
accordance with any installation guidelines provided by PHC.

                  2. Billing and Payment. At the end of each calendar month
during the Transition Period, PHC shall submit to Holdco a bill or invoice
setting forth the Service Fees and Charges for Services provided by PHC or its
Affiliates during the immediately preceding month. Holdco shall pay all bills
and invoices that it receives from PHC or its Affiliates for the Services
provided under or pursuant to this Agreement within thirty (30) calendar days of
receipt of such bill or invoice. All payments will be made by wire transfer or
by check in accordance with the instructions provided in writing by PHC.

                  3. General Intent. PHC shall use its reasonable best efforts
to provide the Services it is to provide that are set forth on Annex A attached
hereto and such other transition services and assistance as the parties may
otherwise agree (with respect to such additional services, at a cost and for
such period as is mutually agreed). Holdco agrees to use its reasonable best
efforts to end its need to use such assistance as soon as reasonably possible
and (unless the parties otherwise agree) in all events to end such need with
respect to each Service specified in Annex A attached hereto not later than the
first anniversary of the date hereof; provided, however, that if PHC is not
permitted, by the terms of its Agreements with third parties relating to the
Services, to provide any of the Services hereunder for the entire Term, then
such Service or Services shall only be provided by PHC to the extent, and for
the period of time permitted by, such Agreement.

                  4. Validity of Documents. The parties hereto shall be entitled
to rely upon the genuineness, validity or truthfulness of any document,
instrument or other writing presented in connection with this Agreement unless
such document, instrument or other writing appears on its face to be fraudulent,
false or forged.

                  5. Term of Agreement. The term of this Agreement (the "Term")
shall commence on the date hereof and shall continue (unless sooner terminated
pursuant to the terms of Section 6 hereof) for a period of one year or, with
respect to any of the Services, such shorter period as may be permitted under
the terms of third-party agreements relating to such Services. It is understood
that Services provided in accordance with the Keane Agreement may not exceed a
period of six months under the terms of the Keane Agreement unless otherwise
agreed upon by Keane.

                  6. Partial Termination. The provision of one or more of the
Services provided by PHC and/or its Affiliates hereunder may be terminated by
Holdco earlier than the first anniversary of the date hereof, on not less than
sixty (60) days' prior written notice to PHC. Such termination shall be final as
of such sixtieth day or other later date specified in the applicable notices
only with respect to the Service(s) so terminated and the remainder of the
Services shall continue to be provided in accordance

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with the terms of this Agreement, including Annex A hereto, for the remainder of
the Term.

                  7. Assignment. This Agreement shall not be assignable or
otherwise transferable by any party hereto, other than to its affiliates,
without the prior written consent of the other party hereto provided that Holdco
shall be permitted to assign its rights hereunder to the financing sources of
Holdco with respect to the financing of the transactions contemplated by the
Recapitalization Agreement and provided that PHC shall be permitted to assign
its rights and obligations hereunder to any person or entity that acquires
substantially all the business and assets of PHC, whether by merger,
consolidation, sale of stock or assets or otherwise.

                  8. Confidentiality. Each party shall, and shall cause each of
its Affiliates and each of their officers, directors and employees to, hold all
confidential or proprietary information relating to (i) the Services or (ii) the
business of the other party disclosed to it by reason of this Agreement
confidential and will not disclose any of such information to any party unless
legally compelled to disclose such information; provided, however, that to the
extent that any of them may become so legally compelled they may only disclose
such information if they shall first have used reasonable efforts, to have
afforded the other party the opportunity to obtain an appropriate protective
order or other satisfactory assurance of confidential treatment for the
information required to be so disclosed.

                  9. Limitation of Liability. PHC shall not be liable to Holdco
or any third party (including specifically affiliates or employees of Holdco)
and Holdco shall not be liable to PHC or any third party (including specifically
affiliates or employees of PHC) for any special, punitive, consequential,
incidental or exemplary damages (including lost or anticipated revenues or
profits relating to the same) arising from any claim relating to this Agreement
or any of the services provided hereunder, whether such claim is based on
warranty, contract, tort (including negligence or strict liability) or
otherwise, even if an authorized representative of PHC or Holdco, as applicable,
is advised of the possibility or likelihood of the same. In addition, PHC shall
not be liable to Holdco or any third party (including specifically employees of
Holdco) for any damages arising from any claim relating to this Agreement or any
of the Services provided hereunder or required to be provided hereunder, except
to the extent that such damages are caused by the willful misconduct or gross
negligence of PHC or its Affiliates, as applicable.

                  10. Indemnification.

                           (a) To the fullest extent permitted by law, from and
after the date hereof Holdco shall indemnify and hold PHC harmless, including
PHC's Affiliates, shareholders, directors, officers, employees, agents, and
other representatives (collectively, the "PHC Indemnitees"), from and against
any and all damages (including exemplary damages and penalties, losses,
deficiencies, costs, expenses, obligations,

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fines, expenditures, claims and liabilities, reasonable counsel fees and
reasonable expenses of investigation, defending and prosecuting litigation
(collectively, the "Damages") suffered by any PHC Indemnitee, arising out of,
resulting from, or related to this Agreement, the Services provided hereunder,
or its actions in relation thereto, including Damages alleged or caused to third
parties, unless such Damages are the result of PHC's gross negligence or willful
misconduct.

                           (b) To the fullest extent permitted by law, from and
after the date hereof PHC shall indemnify and hold Holdco harmless, including
Holdco's Affiliates, shareholders, directors, officers, employees, agents, and
other representatives (collectively, the "Holdco Indemnitees"), from and against
any and all Damages suffered by a Holdco Indemnitee arising out of, resulting
from, or related to this Agreement, the Services provided hereunder, or its
actions in relation thereto, including Damages alleged or caused to third
parties, but only to the extent such Damages are caused by PHC's gross
negligence or willful misconduct.

                  11. Notices. All notices, reports and receipts shall be in
writing and shall be deemed duly given on (i) the date of personal or courier
delivery; (ii) the date of transmission by telecopy or other electronic
transmission service, provided a confirmation copy is also sent no later than
the next business day by postage paid, return receipt requested first-class
mail; or (iii) three (3) business days after the date of deposit in the United
States mails, by postage paid, return receipt requested first-class mail,
addressed as follows:

                  if to Holdco, to:

                           c/o: Joseph, Littlejohn & Levy
                           450 Lexington Avenue
                           New York, NY 10017
                           Attention: Jeffrey Lightcap
                           Facsimile:  (212) 286-8686

                  with a copy to:

                           Skadden, Arps, Slate, Meagher & Flom LLP
                           One Rodney Square
                           P.O. Box 636
                           Wilmington, Delaware  19899
                           Attention:   Robert B. Pincus, Esq.
                           Facsimile:  (302) 651-3001

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                  if to PHC, to:

                           Paracelsus Healthcare Corporation
                           515 W. Greens Road
                           Suite 800
                           Houston, TX 77067
                           Attention:  James VanDevender
                           Facsimile:  (281) 774-5200

                  with a copy to:

                           Mayor, Day, Caldwell, Keeton, LLP
                           700 Louisiana, Suite 1900
                           Houston, TX  77002-2778
                           Attention:  Diana M. Hudson, Esq.
                           Facsimile:  (713) 225-7047

                  Either party may change its address by written notice to the
other party in accordance with this Section 11.

                  12. Modification; Nonwaiver. No alleged waiver, modification
or amendment to this Agreement or to Annex A or Annex B attached hereto shall be
effective against either party hereto, unless in writing, signed by the party
against which such waiver, modification or amendment is asserted, and referring
specifically to the provision hereof alleged to be waived, modified or amended.
The failure or delay of either party to insist upon the other party's strict
performance of the provisions in this Agreement or to exercise in any respect
any right, power, privilege or remedy provided for under this Agreement shall
not operate as a waiver or relinquishment thereof, nor shall any single or
partial exercise of any right, power, privilege or remedy preclude other or
further exercise thereof, or the exercise of any other right, power, privilege
or remedy; provided, however, that the obligations and duties of either party
with respect to the performance of any term or condition in this Agreement shall
continue in full force and effect.

                  13. Relationship of Parties. Except as specifically provided
herein, none of the parties shall act or represent or hold itself out as having
authority to act as an agent or partner of the other parties, or in any way bind
or commit the other party to any obligations. Nothing contained in this
Agreement shall be construed as creating a partnership, joint venture, agency,
trust or other association of any kind, each party being individually
responsible only for its obligations as set forth in this Agreement.

                  14. Force Majeure. If PHC or Holdco is prevented from
complying, either totally or in part, with any of the terms or provisions of
this Agreement by reason of fire, flood, storm, strike, lockout or other labor
trouble, any law, order, proclamation,

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regulation, ordinance, demand or requirement of any governmental authority,
riot, war, rebellion or other causes beyond the reasonable control of PHC or
Holdco, or other acts of God, then upon written notice to PHC or Holdco, as
applicable, the affected provisions and/or other requirements of this Agreement
shall be suspended during the period of such disability and PHC shall have no
liability to Holdco and Holdco shall have no liability to PHC, as applicable, or
any other party in connection therewith. PHC or Holdco, as applicable, shall
make all commercially reasonable efforts to remove such disability within thirty
(30) days of giving notice of such disability.

                  15. Interpretation. The headings and captions contained in
this Agreement and in Annex A and Annex B attached hereto are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. The use of the word "including" herein shall mean "including
without limitation."

                  16. Counterparts. This Agreement may be executed in one or
more counterparts (including by means of telecopied signature pages), all of
which shall be considered one and the same agreement, and shall become effective
when one or more such counterparts have been signed by each of the parties and
delivered to the other party.

                  17. Entire Agreement. This Agreement (including the Annex
attached hereto) and the Recapitalization Agreement and the Collateral
Agreements constitute the entire agreement and supersede all prior agreements
and understandings, both written and oral, between the parties with respect to
the subject matter hereof.

                  18. Severability. If any provision of this Agreement,
including any phrase, sentence, clause, section or subsection is inoperative or
unenforceable for any reason, such circumstances shall not have the effect of
rendering the provision in question inoperative or unenforceable in any other
case or circumstance, or of rendering any other provision or provisions herein
contained invalid, inoperative, or unenforceable to any extent whatsoever.

                  19. Governing Law. This Agreement shall be governed in all
respects, including as to validity, interpretation and effect, by the internal
laws of the State of Delaware, without regard to the conflicts of law principles
therein.

                  20. Annexes. Each of Annex A and Annex B attached hereto and
referred to herein is hereby incorporated in and made a part of this Agreement
as if set forth in full herein.

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                  IN WITNESS WHEREOF, the parties have caused this Transition
Services Agreement to be executed by their duly authorized representatives as of
the date and year first set forth above.

                                    PARACELSUS HEALTHCARE CORPORATION

                                    By: /s/ James G. VanDevender
                                        ---------------------------------
                                    Name: James G. VanDevender
                                        ---------------------------------
                                    Title: Chief Executive Officer
                                        ---------------------------------

                                    PHC/PSYCHIATRIC HEALTHCARE CORPORATION

                                    By:  /s/ Frank Coyle
                                        ---------------------------------
                                    Name: Frank Coyle
                                        ---------------------------------
                                    Title:  Secretary
                                        ---------------------------------

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                                     Annex A

                                    SERVICES

                  "Services" shall mean the computer and data processing
services provided to the Business by PHC immediately prior to the date hereof
pursuant to the following software products, systems and services, in accordance
with the applicable Service Agreements:

                  A.   Computer Software Systems/Services
                       -        PATCOM Plus Patient Accounting Systems
                                -   Patient Accounting
                                -   ADT / Census
                                -   Master Patient Index
                                -   Patient Billing
                                -   All Payor Logs
                                -   Accounts Receivable Management System
                                -   Medibase
                                -   MediData
                                -   Interface between CompuLAB and 3M Encoding
                               System (PC)

                       -        LAWSON Financial Management System
                                -   Accounts Payable
                                -   General Ledger
                                -   Payroll
                                -   Human Resources
                                -   Benefits
                                -   Materials Management

                       -        CompuLAB Clinical Lab Systems (Davis only)

                       -        Network
                                -   Utilize existing MCI Worldcom Frame
                                    Relay Network necessary to access
                                    the PATCOM Plus and LAWSON Systems.

                  B.   Holdco and its subsidiaries operating the Business
                       will be granted access to PHC's computer hardware at
                       the Data Center for the purposes of utilizing the
                       Services.

                  C.   PHC shall also provide Back-up Tape and Media and
                       Off-Site Storage for the Facilities Data processed.

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<PAGE>   10

                                     Annex B

                               Summary of Charges

                  In addition to the Service Fee, the following charges shall
apply in connection with the Services.

                  1. SYSTEM INITIALIZATION FEE. Holdco shall pay a one time
initialization fee of $2,000 per Facility promptly upon invoice.

                  2. TRAINING, SUPPORT AND ADDITIONAL FEES.
<TABLE>
<CAPTION>

<S>                                                                               <C>
                   a)  Reruns:           Dayend                                    $1,000.00
                                         Monthend                                   2,000.00

                   b)  Special Reports - PATCOM Plus                                  500.00
                                       - LAWSON                                       500.00

                   c)  Deinstallation Fee (per site)                                1,500.00

                   d)  Hourly Rate. The agreed hourly rate is $95.00 per hour.

                   e)  Training and Support. PHC will provide training and
                       onsite support as requested by Holdco, at the agreed
                       hourly rate plus expenses.
</TABLE>

                  3. ADDITIONAL USER DOCUMENTATION AND SUPPLIES. Additional user
documentation or supplies requested by Holdco will be provided at the current
cost to PHC to the extent such documentation or supplies are available.

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                                                                   EXHIBIT 3.4

                              AMENDED AND RESTATED

                                     BY-LAWS

                                       OF

                          IASIS HEALTHCARE CORPORATION

                     (hereinafter called the "Corporation")

                                    ARTICLE I

                                     OFFICES

                  Section 1. Registered Office. The registered office of the
Corporation shall be in the City of Wilmington, County of New Castle, State of
Delaware.

                  Section 2. Other Offices. The Corporation may also have
offices at such other places both within and without the State of Delaware as
the Board of Directors may from time to time determine.

                                   ARTICLE II

                            MEETINGS OF STOCKHOLDERS

                  Section 1. Place of Meetings. Meetings of the stockholders for
the election of directors or for any other purpose shall be held at such time
and place, either within or without the State of Delaware as shall be designated
from time to time by the Board of Directors.

                  Section 2. Annual Meetings. The Annual Meetings of
Stockholders for the election of directors shall be held on such date and at
such time as shall be<PAGE>   1
                                                                EXHIBIT 10.11
                              TAX SHARING AGREEMENT

            Tax Sharing Agreement (the "Agreement"), dated as of October 8th,
1999, by and among JLL Healthcare, LLC, a Delaware limited liability company
("Parent"), and the affiliates of JLL Healthcare, LLC listed on Schedule A
attached hereto, as amended from time to time (each a "Sub" and collectively
"the Subs").

            WHEREAS, Parent and the corporations listed on Schedule A attached
hereto (collectively and including any other includible corporations, the
"Members") are includible corporations in an affiliated group of corporations of
which Parent is the common parent (the "Group"), all within the meaning of
Section 1504(a) of the Internal Revenue Code of 1986, as amended (the "Code");
and

            WHEREAS, Parent and the Subs wish to allocate and settle between
Parent and the Subs in an equitable manner the consolidated or combined U.S.
federal, foreign, state, and local income tax liabilities of the Group.

            NOW, THEREFORE, in consideration of the mutual covenants contained
herein, Parent and the Subs agree as follows:

            1. Definitions. For purposes of this Agreement, the following terms
shall be defined as follows:

                  (a) "Estimated Tax Payments" shall mean for a Taxable Period
(as defined in Section 1(d)) the aggregate payments for such Taxable Period
provided in Section 2 hereof.

                  (b) "Final Determination" shall mean a closing agreement with
the Internal Revenue Service (the "IRS"), a claim for refund that has been
allowed, a deficiency notice with respect to which the period for filing a
petition with the United States Tax Court has expired, or a decision of any
court of competent jurisdiction that is not subject to appeal or for which the
time for appeal has expired.

                  (c) "Separate Tax Liability" for a Taxable Period shall mean
the amount equal to the lesser of (but in no case less than zero) (A) the U.S.
federal income tax liability (including, without limitation, liability for any
penalty, fine, additions to tax, interest, minimum tax and other items of any
nature applicable to each Sub in connection with the determination of such Sub's
U.S. federal income tax liability) that each Sub and its subsidiaries would have
incurred if Sub had filed (i) a consolidated U.S. federal income tax return as
the common parent corporation together with its subsidiaries that would qualify
as includible corporations with the Sub under Section 1504 of the Code or (ii) a
separate U.S.
<PAGE>   2

federal income tax return in the event no such subsidiaries exist, as the case
may be, for the Taxable Period and all prior Taxable Periods, and computed the
applicable tax liability in a manner consistent with (i) general tax accounting
principles, (ii) the Code and the Treasury Regulations promulgated thereunder
(the "Treasury Regulations") and (iii) the Sub's and its subsidiaries', if any,
practice in computing U.S. federal income tax liability (the "Separate Federal
Income Tax Liability") or (B) the product of(i) the U.S. federal income tax
liability of the Group for such year and (ii) a fraction, (x) the numerator of
which is an amount equal to the Separate Federal Income Tax Liability of Sub for
such year and (y) the denominator of which is the aggregate total of the
Separate Federal Income Tax Liability of each member of the Group for such year.

                  (d) "Taxable Period" shall mean any taxable year or portion
thereof ending on or after the date hereof with respect to which a consolidated
U.S. federal income tax return including Sub is or is expected to be filed on
behalf of the Group.

            2. Estimated Tax Payments.

                  (a) For each calendar quarter in the Taxable Period that
includes the date of this Agreement, Sub shall pay to Parent on behalf of Sub
and its subsidiaries an amount equal to the amount of any estimated Separate Tax
Liability that Sub would have been required to pay with respect to such quarter.
Such amount shall be payable by Sub to Parent at least five (5) days prior to
the date on which such estimated U.S. federal income tax payment would have been
due. Such hypothetical estimated U.S. federal income tax liability shall be
determined by Sub in a manner consistent with Section 1(c) hereof.

                  (b) Thirty days before the end of the fourth quarter of each
Taxable Period that ends after the date hereof, Sub shall provide Parent with an
estimate of the Separate Tax Liability for the following Taxable Period and the
amount of estimated U.S. federal income taxes that Sub would have been required
to pay with respect to each quarter in the following Taxable Period if Sub were
filing a consolidated U.S. federal income tax return with Sub as the parent or
separate U.S. federal income tax return, as the case may be, for such Taxable
Period, which estimates shall be prepared in a manner consistent with Section
1(c) hereof and shall be approved by Parent. Parent shall notify Sub of any
disagreement with such estimates within 15 days of Parent's receipt of such
estimates. Upon such notification, Parent and Sub will negotiate in good faith
to resolve the dispute, but if no agreement is reached, Sub's estimates shall be
final, provided that such estimates were prepared in a manner consistent with
Section 1(c) hereof. For each of the first three calendar quarters in every
Taxable Period that begins after the date hereof, Sub shall pay to Parent an
amount equal to the estimated Separate Tax Liability for the Taxable Period that
includes such quarter. Such amount shall be payable by Sub to Parent at least 5
days prior to the date on which such estimated U.S. federal income tax payment
would have been due. If, during

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<PAGE>   3

the course of a Taxable Period, there is a material change in Sub's estimates of
the Separate Tax Liability of Sub for such Taxable Period and the estimated tax
payments resulting therefrom, Sub shall notify Parent of such changes, and the
provisions of this Section 2(b) shall apply as if such new estimates were
submitted to Parent during the fourth quarter of the prior Taxable Period,
except that Sub shall not be required to adjust any payments already made to
Parent with respect to such current Taxable Period to reflect such new
estimates. Notwithstanding anything contrary in this Section 2(b), the amount
that Sub and its subsidiaries shall pay to Parent each calendar quarter pursuant
to this Section 2(b) shall not exceed the amount of estimated U.S. federal
income taxes that Sub would have been obligated to pay to the IRS with respect
to such quarter if Sub were filing a consolidated U.S. federal income tax return
with Sub as the common parent corporation or separate U.S. federal income tax
return, as the case may be, for the Taxable Period that includes such quarter
and all prior Taxable Periods (and such hypothetical estimated U.S. federal
income tax liability shall be determined by Sub in a manner consistent with
Section 1(c) hereof).

            3. Payments and Accruals.

                  (a) For every Taxable Period, (i) Sub shall pay to Parent an
amount equal to the excess, if any, of the actual Separate Tax Liability for
such Taxable Period over the Estimated Tax Payments that it has paid to Parent
for such Taxable Period or (ii) Parent shall accrue as a liability (or, to the
extent not already forwarded to the IRS, promptly pay) to Sub an amount equal to
the excess, if any, of Sub's Estimated Tax Payments that have been paid to
Parent for such Taxable Period over the actual Separate Tax Liability for such
Taxable Period.

                  (b) As soon as practicable following the close of Sub's
taxable year, Sub shall compute the actual Separate Tax Liability, which
computation shall be reviewed by a nationally recognized accounting firm
selected by Parent.

                  (c) If Parent receives from the IRS as a result of a Final
Determination a refund or credit directly attributable to a payment previously
made by Sub in respect of a Separate Tax Liability, then (i) in the case of a
credit, appropriate adjustments will be made to subsequent payments of Sub
required hereunder to Parent and (ii) in the case of a refund, Parent shall
promptly repay to Sub such refund.

            4. Time and Manner of Payment and Accrual. Except as otherwise
provided in Section 3(c), payments and accruals pursuant to Section 3(a) hereof
shall be made no sooner than ten (10) days prior to and no later than five (5)
days prior to the due date of the Group's consolidated U.S. federal income tax
return for the Taxable Period in question, without giving effect to any
extensions. If the due date for such return is extended, such payments and
accruals shall be recalculated by Sub no sooner than ten (10) days prior to and

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<PAGE>   4

no later than five (5) days prior to the filing date for such return, and any
difference between such recalculated payments and accruals and such payments and
accruals (prior to such recalculation) shall be paid to or accrued for the party
entitled thereto at the time of such recalculation.

            All payments Sub is required to make hereunder shall be paid in
immediately available funds as instructed by Parent.

            5. Adjustments.

                  (a) Adjustment of Tax Liability. In the event of any
redetermination of the consolidated U.S. federal income tax liability of the
Group for any Taxable Period as a result of audit by the IRS, amended return,
claim for refund or otherwise, the Separate Tax Liability shall be re-computed
by a nationally recognized accounting firm selected by Parent for such Taxable
Period to take into account such redetermination, and the payments and accruals
pursuant to Section 3 hereof shall be appropriately adjusted. Any reconciliation
between Parent and Sub required by such adjustment shall be paid by Sub, or
accrued as a liability of Parent (or paid by Parent to Sub in the case of a
refund from the IRS), as the case may be, no sooner than ten (10) days prior to
and no later than five (5) days following the earlier of (i) the date of a Final
Determination with respect to such redetermination or (ii) the earliest date
such adjustment can reasonably be calculated or, in the case of a refund from
the IRS, within five (5) days of the receipt of such refund.

                  (b) Deconsolidation.

            (i) In the event that it is determined that Sub has ceased to be a
      Member of the Group with respect to any Taxable Period, the amount of any
      payments ("Deconsolidated Payments") made by Parent or Sub with respect to
      such or subsequent Taxable Periods under Sections 2 and 3 hereof (taking
      into account any adjustments pursuant to paragraph (a) of this Section 5)
      shall be repaid by Sub, or accrued as a liability of Parent, as the case
      may be, with interest at the rate determined under Section 6621(a)(2) of
      the Code no sooner than ten (10) days prior to and no later than five (5)
      days following the earlier of (i) the date of a Final Determination with
      respect to such determination or (ii) the earliest date such adjustment
      can reasonably be calculated. In the event Parent accrues a liability to
      Sub under this Section 5(b)(i), Parent shall promptly (i) repay to Sub any
      Deconsolidated Payments that Parent has not forwarded to the IRS; and
      (ii)(a) file a request with the IRS for a refund of all Deconsolidated
      Payments that Parent has forwarded to the IRS and pay to Sub all amounts
      received from the IRS pursuant to such refund request or (b) apply for and
      receive permission from the IRS to have all Deconsolidated Payments that
      Parent has forwarded to the IRS credited as payments made by Sub to the
      IRS

                                       4
<PAGE>   5

      (in accordance with Treasury Regulation Section 1.1502-75(f)(2)). For
      purposes of this Section 5(b)(i), interest shall be computed in the same
      manner as the IRS would have computed interest with respect to a
      hypothetical overpayment equivalent to the amount to be repaid or accrued
      from the date of such hypothetical overpayment until the date repaid or
      accrued.

            (ii) Notwithstanding anything in this Agreement to the contrary, the
      provisions of the final sentence of Section 3(a) shall continue to apply
      following Sub's ceasing to be a Member of the Group for any reason.

            6. Parent as Agent; Filing of Returns; Payment of Taxes.

                  (a) For each Taxable Period of the Group, Parent shall file,
and cause all Members to join in the filing of, consolidated U.S. federal income
tax returns. Sub hereby consents to the filing of such returns, the making of
such elections and applications and the execution of any other documents as
Parent reasonably believes may be required or appropriate for the filing of such
returns.

                  (b) Sub hereby appoints Parent as its agent, as long as Sub is
a member of the Group, (i) for the purpose of filing all consolidated U.S.
federal income tax returns for the Group and making any election or application
or taking any action in connection therewith on behalf of Sub and (ii) in
connection with any audit, examination or other proceeding relating to any taxes
of the Group (a "Proceeding"), to take any action in respect of any Proceeding,
to control any Proceeding, and to initiate any claim for refund, file any
amended return or take any other action Parent deems appropriate. IASIS
Healthcare Corporation, at its own cost and expense, shall prepare all such tax
returns and conduct all Proceedings in each case subject to the control of
Parent.

                  (c) Parent shall make all required payments of the U.S.
federal consolidated tax liability (including estimated tax payments), if any,
of the Group to the IRS provided that the Subs shall have made all payments
required of it hereunder.

            7. Cooperation. In the event that the preparation of U.S. federal
income tax returns, amended returns, claims for refund, an IRS examination or
litigation relating to the foregoing may require the use of records and
information that is within the exclusive possession and control of Parent or any
Member or former Member, Parent and each Member or former Member shall provide
such records, information and assistance (which may include making employees of
any of the foregoing entities available to provide additional information and
explanatory material thereunder) as are requested by Parent or Sub, as the case
may be, during regular business hours, in connection with any of the
developments described in the preceding sentence. The decision to settle any
issue with the taxing authority

                                       5
<PAGE>   6

shall be Parent's decision but Parent shall in good faith take into account the
intent of this Agreement to treat Sub as it would have been treated on a
consolidated U.S. federal income tax return with Sub as the parent or separate
U.S. federal income return, as the case may be, and shall endeavor to make a
settlement that is consistent with that intent. Any of the information obtained
pursuant to this Section 7 or any provision hereof providing for the sharing of
information shall be kept confidential by the parties hereto.

            8. State, Local and Foreign Taxes. In the event the Parent elects,
or is required to elect, to file combined, unitary or consolidated state, local
or foreign income tax returns with Sub or any of Sub's subsidiaries, the
principles of this Agreement shall be applicable in determining the amount and
time of payment by Sub to the Parent or the accrual of a liability by Parent to
Sub.

            9. Operating Principles. Parent and Sub agree to (i) act, subject to
principles of sound tax planning, to minimize payments required hereunder, (ii)
utilize cash received from any tax authority in respect of prior payments
hereunder to satisfy any unpaid accruals hereunder and (iii) pay timely amounts
paid hereunder in respect of Separate Tax Liability (including for this purpose
the equivalent amounts corresponding to state, local or foreign taxes computed
in accordance with Section 8 hereof) to the appropriate taxing authority and
return to the payor the excess, if any, of (a) such amount over (b) the amount
actually paid in respect thereof to such taxing authority.

            10. Binding Effect; Successors. This Agreement shall be binding upon
each Member of the Group, whether or not such Member was a Member upon the
execution of this Agreement. Parent shall cause each present Member of the Group
formally to assent to the terms hereof and shall cause each future Member of the
Group to so assent promptly after becoming a Member of the Group. This Agreement
shall inure to the benefit of and be binding upon any successors or assigns of
the parties hereto.

            11. Governing Law. This Agreement shall be governed by the laws of
the State of New York without regard to principles of conflicts of law which
would apply a law of a jurisdiction other than the law of the State of New York
to this Agreement.

                            [Signature Page Follows]

                                       6
<PAGE>   7

            IN WITNESS WHEREOF, the parties hereto have caused their names to be
subscribed and executed by their respective officers effective as of the date
first written above.

                                 JLL HEALTHCARE, LLC

                                 By: /s/ Frank A. Coyle

                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Vice President & Assistant Secretary

                                 IASIS HEALTHCARE CORPORATION

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: General Counsel and Secretary

                                 SALT LAKE REGIONAL MEDICAL CENTER,
                                 INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 JORDAN VALLEY HOSPITAL, NC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                      S-1
<PAGE>   8

                                 DAVIS HOSPITAL & MEDICAL CENTER, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 ROCKY MOUNTAIN MEDICAL CENTER, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 PIONEER VALLEY HOSPITAL, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 PIONEER VALLEY HEALTH PLAN, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                      S-2
<PAGE>   9

                                 CLINICARE OF UTAH,INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 SOUTHRIDGE PLAZA HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 SANDY CITY HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 DAVIS SURGICAL CENTER HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                      S-3
<PAGE>   10

                                 IASIS MANAGEMENT COMPANY

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 IASIS HEALTHCARE HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 HEALTH CHOICE ARIZONA, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 METRO AMBULATORY SURGERY CENTER, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                      S-4
<PAGE>   11

                                 BILTMORE SURGERY CENTER, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 BEAUMONT HOSPITAL HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 SSJ ST. PETERSBURG HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 FIRST CHOICE PHYSICIANS NETWORK
                                 HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                 BAPTIST JOINT VENTURE HOLDINGS, INC.

                                 By: /s/ Frank A. Coyle
                                     -------------------------------------------
                                     Name: Frank A. Coyle
                                     Title: Secretary

                                      S-5
<PAGE>   12

                                   Schedule A

IASIS Healthcare Corporation

Salt Lake Regional Medical Center, Inc.

Jordan Valley Hospital, Inc.

Davis Hospital & Medical Center, Inc.

Rocky Mountain Medical Center, Inc.

Pioneer Valley Hospital, Inc.

Pioneer Valley Health Plan, Inc.

CliniCare of Utah, Inc.

Southridge Plaza Holdings, Inc.

Sandy City Holdings, Inc.

Davis Surgical Center Holdings, Inc.

IASIS Management Company

IASIS Healthcare Holdings, Inc.

Health Choice Arizona, Inc.

Metro Ambulatory Surgery Center, Inc.

Biltmore Surgery Center Holdings, Inc.

Biltmore Surgery Center, Inc.

Beaumont Hospital Holdings, Inc.

SSJ St. Petersburg Holdings, Inc.

First Choice Physicians Network Holdings, Inc.

Baptist Joint Venture Holdings, Inc.

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