Document:

EXHIBIT 10.16

                 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
                SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
                 OR OTHER SECURITIES LAWS AND MAY NOT BE SOLD,
                 TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS IT
                   HAS BEEN REGISTERED UNDER SUCH LAWS OR AN
                   EXEMPTION FROM REGISTRATION IS AVAILABLE.

                             STOCK PURCHASE WARRANT

              To Subscribe for and Purchase Class A Common Stock of
                  UNITED SURGICAL PARTNERS INTERNATIONAL, INC.

                            VOID AFTER JUNE 18, 2009

Warrant to subscribe for 800,000                            March 27, 2000
shares of Class A Common Stock,
$.01 par value, as determined in
accordance with the first
paragraph hereof

      THIS CERTIFIES that, for value received, Welsh, Carson, Anderson & Stowe
VII, L.P., or its registered assigns, is entitled, subject to the terms of
Section 1 hereof, to subscribe for and purchase from United Surgical Partners
International, Inc., a Delaware corporation, (the "Company"), at the price of
$.01 per share (such price, as the same may from time to time be adjusted as
hereinafter provided, being hereinafter called the "Warrant Price"), at any time
on or prior to June 18, 2009 up to 800,000 shares of Class A Common Stock, $.01
par value, of the Company ("Common Stock"); subject, however, to the provisions
and upon the terms and conditions hereinafter set forth, including, without
limitation, the provisions of Section 3 hereof. This Warrant, and any warrant or
warrants subsequently issued upon exchange or transfer thereof are hereinafter
called, collectively, the "Warrants."

            Section 1. EXERCISE OF WARRANT. (a) This Warrant may be exercised by
the holder hereof, in whole or in part, by the completion of the subscription
form attached hereto and by the surrender of the Warrant (properly endorsed) at
the principal executive offices of the Company (or at such other agency or
office of the Company as it may designate by notice in writing to
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the holder hereof at the address of the holder hereof appearing on the books of
the Company), and by payment to the Company of the Warrant Price, at the
election of such holder, (i) in cash or by certified or official bank check, for
the aggregate Warrant Price for the shares being purchased, or, (ii) by
surrender to the Company for cancellation any indebtedness of (whether for
principal, interest or any other indebtedness), or claim against, the Company,
or any portion thereof, for which credit shall be given toward the Warrant Price
for each share of Common Stock being acquired upon the exercise hereof on a
dollar-for-dollar basis with reference to the amount of the indebtedness or
claim cancelled, or (iii) by receiving from the Company the number of shares of
Common Stock equal to the number of shares of Common Stock otherwise issuable
upon such exercise less the number of shares of Common Stock having a fair
market value on the date of exercise equal to the Warrant Price applicable to
the number of shares of Common Stock for which this Warrant is being exercised,
or (iv) by payment of the Warrant Price for each share of Common Stock being
acquired upon exercise hereof in any combination of two or more of the methods
described in clauses (i), (ii) and (iii) above.

            (b) In the event of any exercise of the rights represented by this
Warrant, a certificate or certificates for the shares of Common Stock so
purchased, registered in the name of the holder hereof, shall be delivered to
the holder hereof within seven business days after the rights represented by
this Warrant shall have been so exercised; and, unless this Warrant has expired
or been exercised in full, a new Warrant representing the number of shares, if
any, with respect to which this Warrant shall not then have been exercised shall
also be issued to the holder hereof within such time. With respect to any such
exercise, the holder hereof shall for all purposes be deemed to have become the
holder of record of the number of shares of Common Stock evidenced by such
certificate or certificates from the date on which this Warrant was surrendered
and payment of the Warrant Price was made irrespective of the date of delivery
of such certificate, except that, if the date of such surrender and payment is a
date on which the stock transfer books of the Company are closed, such person
shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are open.

            (c) For purposes hereof, the fair market value of a share of Common
Stock on any date shall be equal to the fair market value of the Company's
Common Stock determined on the basis of (1) the last sale price of shares of
Common Stock, regular way, on such date or, if no such sale takes place on such
date, the average of the closing bid and asked prices thereof on such date, in
each case as officially reported on the principal national securities exchange
on which the Common Stock is then listed or admitted to trading, or (2) if no
shares of Common Stock are then listed or admitted to trading, or (2) if no
shares of Common Stock are then listed or admitted to trading on any national
securities exchange but the Common stock is designated as a national market
system security by the National Association of Securities Dealers, the last
trading price of the Common Stock on such date. If the shares of Common Stock
are not then listed or admitted to trading on any national exchange or
designated as a national market system security, the fair market value shall be
the most recent purchase price per share of Common Stock issued in a financing
or the purchase price plus exercise price of options for Common Stock, in each
case within the last six months. If no such issuance of Common

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Stock or options has occurred within the last six months, then the fair market
value shall be determined in good faith by mutual agreement of the Company and
the holders of not less than 66-2/3% of the shares of Common Stock issuable upon
exercise of the outstanding Warrants (including this Warrant) issued pursuant to
the Warrant Agreement. If the Company and such holder or holders, as the case
may be, are unable to agree on a value within 30 days, the fair market value
shall be determined by a mutually agreed-upon nationally recognized investment
bank firm (to be retained solely at the expense of the Company).

            Section 2. ADJUSTMENT OF NUMBER OF SHARES. Upon each adjustment of
the Warrant Price as provided in Section 3, the holder of this Warrant shall
thereafter be entitled to purchase, at the Warrant Price resulting from such
adjustment, the number of shares (calculated to the nearest tenth of a share)
obtained by multiplying the Warrant Price in effect immediately prior to such
adjustment by the number of shares purchasable pursuant hereto immediately prior
to such adjustment and dividing the product thereof by the Warrant Price
resulting from such adjustment.

            Section 3. ADJUSTMENT IN CERTAIN EVENTS.

            (a) SUBDIVISION OR COMBINATION OF STOCK. In case the Company shall
at any time subdivide its outstanding shares of Common Stock into a greater
number of shares, the Warrant Price in effect immediately prior to such
subdivision shall be proportionately reduced, i.e., the holder shall be
entitled to purchase after such subdivision, for the same consideration as
applicable prior to such subdivision, the same percentage of outstanding Common
Stock that such holder was entitled to purchase prior to such subdivision, and
conversely, in case the outstanding shares of Common Stock of the Company shall
be combined into a smaller number of shares, the Warrant Price in effect
immediately prior to such combination shall be proportionately increased.

            (b) REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE.
If any capital reorganization or reclassification of the capital stock of the
Company or any consolidation or merger of the Company with another corporation,
or the sale of all or substantially all its assets to another corporation shall
be effected in such a way that holders of Common Stock shall be entitled to
receive stock, securities or assets with respect to or in exchange for Common
Stock, then, as a condition of such reorganization, reclassification,
consolidation, merger or sale, lawful and adequate provisions shall be made
whereby each holder of the Warrants shall thereafter have the right to receive
upon the basis and upon the terms and conditions specified herein and in lieu of
the shares of Common Stock of the Company immediately therefore receivable upon
the exercise of such Warrant and Warrants, such shares of stock, securities or
assets (including cash) as may be issued or payable with respect to or in
exchange for a number of outstanding shares of Common Stock equal to the number
of shares of such stock immediately theretofore so receivable had such
reorganization, reclassification, consolidation, merger or sale not taken place,
and in any such case appropriate provision shall be made with respect to the
rights and interests of such holder to the end that the provisions hereof
(including, without limitation,

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provisions for adjustments of the Warrant Price) shall thereafter be applicable,
as nearly as may be, in relation to any shares of stock, securities or assets
thereafter deliverable upon the exercise of such Warrants (including an
immediate adjustment, by reason of such consolidation or merger, of the Warrant
Price to the value for the Common Stock reflected by the terms of such
consolidation or merger if the value so reflected is less than the Warrant Price
in effect immediately prior to such consolidation or merger). In the event of a
merger or consolidation of the Company as a result of which a greater or lesser
number of shares of common stock of the surviving corporation are issuable to
holders of Common Stock of the Company outstanding immediately prior to such
merger or consolidation, the Warrant Price in effect immediately prior to such
merger or consolidation shall be adjusted in the same manner as though there
were a subdivision or combination of the outstanding shares of Common Stock of
the Company. The Company shall not effect any such consolidation, merger or
sale, unless prior to the consummation thereof the successor corporation (if
other than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall assume, by written instrument executed
and mailed or delivered to each holder hereof at the last address of such holder
appearing on the books of the Company, the obligation to deliver to such holder
such shares of stock, securities or assets as, in accordance with the foregoing
provisions, such holder may be entitled to receive upon exercise of such
Warrants.

            (c) NOTICE OF ADJUSTMENT. Upon any adjustment of the Warrant Price,
then and in each such case the Company shall give written notice thereof, by
first class mail, postage prepaid, addressed to each holder hereof at the
address of such holder as shown on the books of the Company, which notice shall
state the Warrant Price resulting from such adjustment and the number of shares
for which this Warrant may be exercised, setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based.

            (d) STOCK TO BE RESERVED. The Company shall at all times reserve and
keep available out of its authorized Common Stock or its treasury shares, solely
for the purpose of issuance upon the exercise of this Warrant as herein
provided, such number of shares of Common Stock as shall then be issuable upon
the exercise of this Warrant. The Company covenants that all shares of Common
Stock which shall be so issued shall be duly and validly issued and fully paid
and nonassessable and free from all taxes, liens and charges with respect to the
issue thereof, and, without limiting the generality of the foregoing, the
Company covenants that it shall from time to time take all such action as may be
requisite to assure that the par value per share of the Common Stock shall be at
all times equal to or less than the effective Warrant Price. The Company shall
take all such action as may be necessary to assure that all such shares of
Common Stock may be so issued without violation of any applicable law or
regulation, or of any requirements of any national securities exchange upon
which the Common Stock of the Company may be listed. The Company shall not take
any action which results in any adjustment of the Warrant Price if the total
number of shares of Common Stock issued and issuable after such action upon
exercise of this Warrant would exceed the total number of shares of Common Stock
then authorized by the Company's Certificate of Incorporation. The Company has
not

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granted and will not grant any right of first refusal with respect to shares
issuable upon exercise of this Warrant, and there are no preemptive rights
associated with such shares.

            (e) ISSUE TAX. The issuance of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the holder
hereof for any issuance tax in respect thereof; PROVIDED that the Company shall
not be required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than
that of the holder hereof; and PROVIDED FURTHER, that the Company shall not be
liable for any federal, state or local income or similar tax on the holder
hereof in connection with any exercise of this Warrant.

            (f) CLOSING OF TRANSFER BOOKS. The Company will at no time close its
transfer books against the transfer of the shares of Common Stock issued or
issuable upon the exercise of this Warrant in any manner which interferes with
the timely exercise of this Warrant.

            (g) DEFINITION OF COMMON STOCK. As used herein the term "Common
Stock" shall mean and include the Class A Common Stock, par value $.01 per
share, of the Company as authorized on June 18, 1999 and also any capital stock
of any class of the Company hereinafter authorized that shall not be limited to
a fixed sum or percentage in respect of the rights of the holders thereof to
participate in dividends or in the distribution of assets upon the voluntary or
involuntary liquidation, dissolution or winding up of the Company; PROVIDED,
HOWEVER, that the shares purchasable pursuant to this Warrant shall include only
shares designated as Class A Common Stock, par value $.01 per share, of the
Company on June 18, 1999 or shares of any class or classes resulting from any
reclassification or reclassifications thereof and in case at any time there
shall be more than one such resulting class, the shares of each class then so
issuable shall be substantially in the proportion which the total number of
shares of such class resulting from all such reclassifications bears to the
total number of shares of all such classes resulting from all such
reclassifications.

            Section 4. REGISTRATION RIGHTS. The rights of the holders hereof
with respect to the registration under the Securities Act of 1933, as amended,
of shares of Common Stock issuable upon the exercise of the Warrants are set
forth in the Registration Agreement, dated as of April 30, 1998, among the
Company and the other parties named therein, as amended.

            Section 5. NOTICES OF RECORD DATES. In the event of:

            (1) any taking by the Company of a record of the holders of any
      class of securities for the purpose of determining the holders thereof who
      are entitled to receive any dividend or other distribution, or any right
      to subscribe for, purchase or otherwise acquire any shares of stock of any
      class or any other securities or property, or to receive any right to sell
      shares of stock of any class or any other right; or

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            (2) any capital reorganization of the Company, any reclassification
      or recapitalization of the capital stock of the Company or any transfer of
      al or substantially all the assets of the Company to or consolidation or
      merger of the Company with or into any other corporation or entity; or

            (3) any voluntary or involuntary dissolution, liquidation or
      winding-up of the Company;

then and in each such event the Company shall give notice to the holder of this
Warrant specifying (i) the date on which any such record is to be taken for the
purpose of such dividend, distribution or right and stating the amount and
character of such dividend, distribution or right, and (ii) the date on which
any such reorganization, reclassification, recapitalization, transfer,
consolidation, merger, dissolution, liquidation or winding-up is to take place,
and the time, if any is to be fixed, as of which the holders of record of Common
Stock will be entitled to exchange their shares of Common Stock for securities
or other property deliverable upon such reorganization, reclassification,
recapitalization, transfer, consolidation, merger, dissolution, liquidation or
winding-up. Such notice shall be given at least 20 days and not more than 90
days prior to the date therein specified, and such notice shall state that the
action in question or the record date is subject to (x) the effectiveness of a
registration statement under the Securities Act of 1933, as amended, and
applicable state securities laws, or (y) a favorable vote of stockholders, if
either is required.

            Section 6. NO STOCKHOLDER RIGHTS. This Warrant shall not entitle the
holder hereof to any voting rights or other rights as a shareholder of the
Company. No provision hereof, in the absence of affirmative action by the holder
hereof to purchase shares of Common Stock, and no mere enumeration herein of the
rights or privileges of the holder hereof, shall give rise to any liability of
such holder for the Warrant Price or as a shareholder of the Company, whether
such liability is asserted by the Company or by creditors of the Company.

            Section 7. LOST, STOLEN, MUTILATED OR DESTROYED WARRANT. If this
Warrant is lost, stolen, mutilated or destroyed, the Company shall, on such
terms as to indemnify or otherwise as it may in its discretion reasonably impose
(which shall, in the case of a mutilated Warrant, include the surrender
thereof), issue a new Warrant of like denomination and tenor as the Warrant so
lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute an
original contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by
anyone.

            Section 8. NOTICES. All notices, requests and other communications
required or permitted to be given or delivered hereunder shall be in writing,
and shall be delivered, or shall be sent by national overnight courier service
or by certified or registered mail, postage prepaid and addressed, if to the
holder, to such holder at the address shown on the records of the Company or at
such other address as shall have been furnished to the Company by notice from
such holder and, if to the Company, addressed to the Company at 17103 Preston
Road, Suite 200

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North Dallas, Texas 75248 or at such other address as shall have been furnished
to the holder by notice from the Company.

            Section 9. GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING
EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD
CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
NEW YORK.

            Section 10. AMENDMENTS. The provisions of this Warrant may be
amended only with the prior written consent of the holders of not less than
66-2/3% of the shares of Common Stock issuable upon exercise of the outstanding
Warrants.

            Section 11. TRANSFERABILITY. This Warrant and all rights hereunder
shall not be transferable except to partners or affiliates of Welsh, Carson,
Anderson & Stowe VII, L.P.

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            IN WITNESS WHEREOF, UNITED SURGICAL PARTNERS INTERNATIONAL, INC.,
has executed this Warrant on and as of the day and year first above written.

                                                UNITED SURGICAL PARTNERS
                                                INTERNATIONAL, INC.

                                                By /s/ DONALD STEEN
                                                Name:  Donald Steen
                                                Title:

Attest:

____________________________
        SecretaryEXHIBIT 10.17

                              EMPLOYMENT AGREEMENT

      This Employment Agreement ("Agreement") is entered into effective as of
November 1, 2000, by and between United Surgical Partners International, Inc., a
Delaware corporation ("USP"), and Donald E. Steen ("Employee"), with reference
to the following facts:

                                    RECITALS

      A. USP desires to employ Employee in the capacities and on the terms and
conditions hereinafter set forth and Employee is willing to serve in such
capacities and on such terms and conditions.

      B. This Agreement shall replace any and all existing employment agreements
and arrangements between USP and Employee.

      NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants contained herein, USP and Employee mutually agree as follows:

                                    AGREEMENT

      1. EMPLOYMENT. USP hereby employs Employee as the Chairman of the Board
and Chief Executive Officer of USP; provided, however, that Employee may resign,
or the Board of Directors of USP may remove Employee, from the position of Chief
Executive Officer at any time after the second anniversary of the date of this
Agreement.

      2. DUTIES. In his capacity as Chief Executive Officer, Employee shall
devote substantially all of his working time, energies and skills to the benefit
of USP's business. If Employee is no longer Chief Executive Officer of USP, he
shall devote such time to his duties as Chairman of the Board as are necessary
to fulfill that role. In his capacity as Chief Executive Officer of USP,
Employee (a) shall report to the Board of Directors of USP, (b) shall have such
duties, responsibilities and authority as are set forth in the By-Laws of USP
for the position of Chief Executive Officer and (c) shall have authority to hire
such staff as Employee determines is necessary and to determine the titles and
(subject to established authority levels for setting salaries) the compensation
levels of such staff. In his capacity as Chairman of the Board, Employee shall
have such duties, responsibilities and authority as are set forth in the By-Laws
of USP and as are typical for the position of Chairman of the Board. Employee
agrees to serve USP diligently and to the best of his ability.

      3. COMPENSATION.

      (a) BASE SALARY. USP shall pay Employee a Base Salary ("Base Salary") at a
rate of $300,000 per year until January 1, 2001, increasing to $400,000 per year
as of such date; provided, however, that during any period in which Employee is
no longer serving as Chief Executive Officer, his Base Salary shall be reduced
by $100,000 from the Base Salary

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that would otherwise apply. In addition, the Board of Directors of USP shall, in
good faith, consider granting increases in such salary based on Employee's
performance and the growth and/or profitability of USP, but it shall have no
obligation to grant any such increases in compensation. Base Salary shall be
payable in equal semi-monthly installments on the 15th day and the last working
date of the month, or at such other times and in such installments as may be
agreed upon between USP and Employee. All payments shall be subject to the
deduction of payroll taxes and similar assessments as required by law.

      (b) PERFORMANCE BONUSES. In addition to the Base Salary, Employee shall be
eligible to receive bonus compensation of up to 100% of the Base Salary based on
such performance goals and criteria as the Board of Directors of USP shall, from
time to time, determine.

      4. EXPENSES AND BENEFITS. USP agrees to provide Employee with the
following benefits:

      (a) EXPENSE REIMBURSEMENTS. Employee is authorized to incur reasonable
expenses in connection with the business of USP, including expenses for
entertainment, travel and similar matters. USP will reimburse Employee for such
expenses upon presentation by Employee of such documentation as USP shall from
time to time require.

      (b) OFFICE SERVICES. USP will provide Employee with an administrative
assistant of his choice and reasonable office space and services.

      (c) INSURANCE. Major medical health insurance and disability insurance as
currently in place (as the same may be modified from time to time by USP for its
senior executives).

      (d) EMPLOYEE BENEFIT PLANS. Participation in any other employee benefit
plans now existing or hereafter adopted by USP for its employees.

      (e) OTHER. Such items and benefits as USP shall, from time to time,
consider necessary or appropriate to assist Employee in the performance of his
duties.

      (f) VACATIONS. Employee shall be entitled (in addition to the usual public
holidays) to a paid vacation of an aggregate of five weeks in each calendar
year.

      5. TERM. The term of this Agreement shall be from the date of this
Agreement to October 31, 2004, and shall thereafter be automatically renewed for
successive one year terms unless either party gives notice of non-renewal at
least 90 days prior to the end of the original or any such renewal term;
provided, however, that either party may terminate this Agreement at any time
upon at least 90 days prior written notice. A determination by USP to terminate
this Agreement may be made only by an affirmative vote of not less than 75% of
the members of the Board of Directors of USP then in office. In the event of
such termination by USP, Employee shall be entitled to severance pay based on
his Base Salary at the time of termination, plus a bonus (payable monthly on a
pro rata basis) at a rate equal to the average

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annual bonuses paid to Employee for the two calendar years preceding the date of
notice of termination, for a period of 12 months following termination or until
October 31, 2004, whichever is later. Such severance pay shall be payable in
monthly installments and USP shall continue the benefits set forth in Sections
4(b) and (c) for the period during which such severance payments are to be made.
In addition, this Agreement shall terminate as provided for in Section 7 or upon
the death of Employee.

      6. DISABILITY.

      (a) In the event that Employee becomes Permanently Disabled (as
hereinafter defined) during the term of this Agreement, Employee shall continue
in the employ of USP but his compensation hereunder shall be reduced to
three-fourths of the Base Salary then in effect as set forth in Section 3(a),
commencing upon the determination of Employee's Permanent Disability and
continuing thereafter until the first to occur of (i) 36 months or (ii) the
death of Employee; and during such period of time, Employee shall not be
entitled to payment of expenses or benefits specified in Section 4 (except for
reimbursement of expenses incurred by Employee prior to becoming Permanently
Disabled), except that USP shall continue to provide Employee with the insurance
benefits specified in Section 4(c). The obligation of USP for continuation of
three-fourths of Employee's Base Salary shall be net of payments to Employee
from the disability insurance referred to in Section 4(c).

      For purposes of this Agreement, the terms "Permanent Disability" or
"Permanently Disabled" shall mean three months of substantially continuous
disability. Disability shall be deemed "substantially continuous" if, as a
practical matter, Employee, by reason of his mental or physical health, is
unable to sustain reasonably long periods of substantial performance of his
duties. Frequent long illnesses, though different from the preceding illness and
though separated by relatively short periods of performance, shall be deemed to
be "substantially continuous." Disability shall be determined in good faith by
the Board of Directors, whose decision shall be final and binding upon Employee.
Employee hereby consents to medical examinations by such physicians and medical
consultants as USP shall, from time to time, require.

      7. TERMINATION BY USP FOR CAUSE. USP shall have the right to terminate
Employee's employment under this Agreement for "Cause" by an affirmative vote to
so terminate by not less than 75% of the members of USP's Board of Directors, in
which event, no compensation shall be paid or other benefits furnished to
Employee after termination for Cause. Termination for Cause shall be effective
immediately upon notice sent or given to Employee. For purposes of this
Agreement, the term "Cause" shall mean and be strictly limited to: (a)
conviction of a crime constituting a felony under state or federal law; (b)
commission of any material act of dishonesty against USP; or (c) willful and
material breach of this Agreement by Employee.

      8. NON-COMPETITION. Employee recognizes and understands that in performing
the responsibilities of his employment, he will occupy a position of fiduciary
trust and confidence, pursuant to which he will develop and acquire experience
and knowledge with

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respect to USP's business. It is the expressed intent and agreement of Employee
and USP that such knowledge and experience shall be used exclusively in the
furtherance of the interests of USP and not in any manner which would be
detrimental to USP's interests. Employee further understands and agrees that USP
conducts its business within a specialized market segment throughout the United
States and in portions of Europe, and that it would be detrimental to the
interests of USP if Employee used the knowledge and experience which he
currently possesses or which he acquires pursuant to this employment hereunder
for the purpose of directly or indirectly competing with USP, or for the purpose
of aiding other persons or entities in so competing with USP. Employee therefore
agrees that so long as he is employed by USP and, if this Agreement is
terminated by USP pursuant to Section 5, FOR AN ADDITIONAL PERIOD EQUAL TO THE
SHORTER OF ONE YEAR FOLLOWING TERMINATION OR FOR THE PERIOD OF TIME EMPLOYEE IS
RECEIVING A SALARY OR SEVERANCE PAYMENTS FROM USP, unless Employee first secures
the written consent of USP, Employee will not directly of indirectly invest,
engage or participate in or become employed by any entity in direct or indirect
competition with USP's business, which shall include the ownership and/or
operation of outpatient surgical centers in the United States and the ownership
and/or operation of hospitals in the countries in Europe in which USP owns or
operates hospitals as of the date of termination. These non-competition
provisions shall not be construed to prohibit Employee from being employed in
the health care industry during the applicable period, but rather to permit him
to be so employed so long as such employment does not involve Employee's direct
or indirect participation in a business which is the same or similar to USP's
business (as defined above). In the event that the provisions of this Section 8
should ever be deemed to exceed the time or geographic limitations permitted by
applicable laws, then such provisions shall be reformed to the maximum time or
geographic limitations permitted by applicable law.

      9. STOCK OPTIONS. In the event that (a) USP elects to terminate this
Agreement pursuant to Section 5, (b) there is a "Change of Control Event" (as
such term is defined in the Stock Option Agreements, each dated April 30, 1998,
to which USP and Employee are parties) or (c) USP breaches this Agreement by
termination of Employee without the notice required under Section 5 or without
Cause under Section 7, then in each such event, all USP stock options held by
Employee and all restricted stock awards made to him by USP (whether issued
subject to forfeiture or to be issued when and if they become vested) shall
thereupon automatically be amended so as to (i) cause to vest, immediately prior
to the date of such Change in Control Event or termination of employment, all
such then unvested stock options and restricted stock awards, and (ii) provide
Employee 90 days to exercise such options (or such greater period as may be
provided by the terms of such options).

      10. GENERAL PROVISIONS.

      (a) NOTICES. All notices required or permitted by this Agreement shall be
in writing and may be delivered in person or sent by regular, registered or
certified mail or United States Postal Service Express Mail, with postage
prepaid, or by other courier service, or by facsimile transmission, and shall be
deemed sufficiently given if served in the manner specified in this Section
10(a). The addresses and facsimile numbers set forth below shall be the parties
addressed and facsimile numbers for purposes for purposes of delivery or mailing
of notices:

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              If to USP:        c/o United Surgical Partners International, Inc.
                                17103 Preston Road, Suite 200 North
                                Dallas, Texas 75248
                                Attention: William H. Wilcox
                                   President
                                FAX No.: (972) 267-0084

              If to Employee:   Donald E. Steen
                                5715 Thames Court
                                Dallas, Texas 75252
                                FAX No.:(972)248-8868

The parties may change addresses and facsimile numbers noted above through
written notice in compliance with this Section lO(a). Any notice sent by
registered or certified mail, return receipt requested, shall be deemed given
when actually received by the addressee, as shown on the receipt card which must
be signed by a representative of the addressee. If sent by regular mail, the
notice shall be deemed given after the notice is addressed, mailed with postage
prepaid and when actually received by the addressee. Notices delivered by United
States Express Mail or other courier service shall be deemed given when actually
received by the addressee as shown by the signature of an authorized
representative of the addressee on the log or other documentation maintained by
the United States Postal Service or courier to show proof of delivery. If any
notice is transmitted by facsimile transmission or similar means, the notice
shall be deemed served or delivered upon telephone confirmation of receipt of
the transmission.

      (b) CHOICE OF LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, excluding principles of conflict
of laws.

      (c) INTEGRATION: MODIFICATION AND WAIVER. This Agreement constitutes the
entire understanding of the parties hereto relating to the subject matter
hereof, supersedes any and all other agreements, whether oral or in writing,
between the parties hereto and their affiliates with respect to the employment
of Employee, and contains all covenants and agreements between the parties
hereto relating to such employment in any manner whatsoever; provided, however,
that except as expressly provided herein, this Agreement shall not affect any
stock option agreements, indemnity agreements or agreements relating to
Employee's purchase or ownership of USP securities to which Employee is now or
hereafter a party. This Agreement shall not be amended, modified or revised in
any respect, except by a writing signed by USP and Employee. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision, whether or not similar, and no waiver shall constitute a
continuing waiver. No waiver shall be binding unless executed in writing by the
party making the waiver.

      (d) SEVERABILITY. If any provision of this Agreement shall be determined
by a court or governmental agency of competent jurisdiction to be invalid,
illegal or unenforceable, such invalidity, illegality or unenforceability shall
not affect the remainder of this

                                        5
<PAGE>
Agreement, which shall remain in full force and effect and be enforced in
accordance with its remaining enforceable terms.

      (e) ASSIGNMENT. Because of the personal nature of the services to be
rendered hereunder, the obligations of Employee under this Agreement may not be
delegated or assigned in whole or in part without the prior written consent of
USP (which consent may be withheld in its sole discretion. However, subject to
the foregoing limitation, this Agreement shall be binding upon, and shall insure
to the benefit of, the parties hereto and their respective heirs, devisees,
executors, administrators, trustees, legal representatives, successors,
transferees and assigns.

      (f) ATTORNEYS' FEES. In any action or proceeding at law or in equity,
including but not limited to arbitration, brought to enforce or construe any
provisions or rights under this Agreement, the unsuccessful party or parties to
such litigation or arbitration, as determined by the appropriate court or
arbitrator pursuant to a final judgment or decree, shall pay the successful
party or parties all costs, expenses and reasonable attorneys' fees incurred by
such successful party or parties (including but not limited to such costs,
expenses and fees in connection with any appeals) and, if such successful party
or parties shall recover judgment in any such action or proceeding, such costs,
expenses and attorneys' fees shall be included as part of such judgment.

      (g) SURVIVAL OF CERTAIN PROVISIONS. The provisions of Sections 4(a) (as to
expenses incurred prior to termination), 5, 8 and 9 shall survive the expiration
or other termination of this Agreement.

      (h) HEADINGS AND CAPTIONS. Headings and captions are included in this
Agreement for purposes of convenience only and are not a part of this Agreement.

      (i) MISCELLANEOUS. Any term used in the plural shall refer to all members
of the relevant class and any term used in the singular shall refer to any one
or more of the members of the relevant class. References in this Agreement to
articles, sections, paragraphs and exhibits are to articles, sections,
paragraphs and exhibits to this Agreement. The terms "herein," "hereof,"
"hereto," "hereunder" and other terms similar to such terms refer to this
Agreement as a whole and not merely to the specific article, section, paragraph
or clause where such terms may appear.

      (j) COUNTERPARTS AND FACSIMILE SIGNATURES. Separate copies of this
Agreement may be signed by the parties hereto, with the same effect as though
all of the parties had signed one copy of this Agreement. Signatures transmitted
by facsimile shall be accepted as original signatures.

                                        6
<PAGE>
      IN WITNESS WHEREOF, the undersigned have duly executed this Employment
Agreement as of the date first written above.

USP:                          UNITED SURGICAL PARTNERS INTERNATIONAL, INC.

                              By:/s/PAUL B. QUEALLY
                                    Paul B. Queally
                                    Chairman, Options and Compensation Committee

EMPLOYEE:                     /s/ DONALD E. STEEN
                                  Donald E. Steen

                                        7

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