Document:

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                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT is made and entered into as of
October 10, 2001 by and between Province Healthcare Company, a Delaware
corporation (the "Company"), and Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated, First Union Securities, Inc., UBS Warburg LLC and
Banc of America Securities LLC (collectively, the "Initial Purchasers") pursuant
to the Purchase Agreement, dated as of October 4, 2001 (the "Purchase
Agreement"), between the Company and the Initial Purchasers. In order to induce
the Initial Purchasers to enter into the Purchase Agreement, the Company has
agreed to provide the registration rights set forth in this Agreement. The
execution of this Agreement is a condition to the closing under the Purchase
Agreement.

         The Company agrees with the Initial Purchasers, (i) for the benefit of
the Initial Purchasers and (ii) for the benefit of the beneficial owners
(including the Initial Purchasers) from time to time of the Securities (as
defined herein) and the beneficial owners from time to time of the Underlying
Common Stock (as defined herein) issued upon conversion of the Securities (each
of the foregoing a "Holder" and together the "Holders"), as follows:

         Section 1.        Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following terms shall have the
following meanings:

         "Affiliate" means, with respect to any specified person, an
"affiliate," as defined in Rule 144, of such person.

         "Amendment Effectiveness Deadline Date" has the meaning specified in
Section 2(d) hereof.

         "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday that is not a day on which banking institutions in The City of New York
are authorized or obligated by law or executive order to close.

         "Common Stock" means any shares of Common Stock, par value $0.01 per
share, of the Company and any other shares of common stock as may constitute
"Common Stock" for purposes of the Indenture, including the Underlying Common
Stock.

         "Conversion Price" has the meaning assigned to that term in the
Indenture.

         "Damages Accrual Period" has the meaning specified in Section 2(e)
hereof.

         "Damages Payment Date" means each October 10 and April 10 in the case
of Securities and the Underlying Common Stock.

         "Deferral Notice" has the meaning specified in Section 3(i) hereof.

         "Deferral Period" has the meaning specified in Section 3(i) hereof.

         "Effectiveness Deadline Date" has the meaning specified in Section 2(a)
hereof.

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         "Effectiveness Period" means the period of two years from the Issue
Date or such shorter period that will terminate upon the earliest of the
following: (A) when all the Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or when
all shares of Common Stock issued upon conversion of any such Securities that
had not been sold pursuant to the Shelf Registration Statement have been sold
pursuant to the Shelf Registration Statement and (B) when, in the written
opinion of counsel to the Company, all outstanding Registrable Securities held
by persons which are not affiliates of the Company may be resold without
registration under the Securities Act pursuant to Rule 144(k) under the
Securities Act or any successor provision thereto.

         "Event" has the meaning specified in Section 2(e) hereof.

         "Event Termination Date" has the meaning specified in Section 2(e)
hereof.

         "Event Date" has the meaning specified in Section 2(e) hereof.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC promulgated thereunder.

         "Filing Deadline Date" has the meaning specified in Section 2(a)
hereof.

         "Holder" has the meaning specified in the second paragraph of this
Agreement.

         "Indenture" means the Indenture dated as of the date hereof between the
Company and the Trustee, pursuant to which the Securities are being issued.

         "Initial Purchasers" has the meaning specified in the first paragraph
of this Agreement.

         "Initial Shelf Registration Statement" has the meaning specified in
Section 2(a) hereof.

         "Issue Date" means October 10, 2001.

         "Liquidated Damages Amount" has the meaning specified in Section 2(e)
hereof.

         "Material Event" has the meaning specified in Section 3(i) hereof.

         "Notice and Questionnaire" means a written notice delivered to the
Company containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to the Offering
Memorandum of the Company issued October 4, 2001 relating to the Securities.

         "Notice Holder" means, on any date, any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date.

         "Principal Amount" means, with the respect to the Securities, the
principal amount due on the maturity date as shown on such Securities.

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         "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 415 promulgated under the
Securities Act), as amended or supplemented by any amendment or prospectus
supplement, including post-effective amendments, and all materials incorporated
by reference or explicitly deemed to be incorporated by reference in such
Prospectus.

         "Purchase Agreement" has the meaning specified in the first paragraph
of this Agreement.

         "Record Holder" means, with respect to any Damages Payment Date
relating to any Securities or Underlying Common Stock as to which any Liquidated
Damages Amount has accrued, the registered holder of such Securities or
Underlying Common Stock, as the case may be, 15 days prior to the next
succeeding Damages Payment Date.

         "Registrable Securities" means the Securities and the Underlying Common
Stock, until such Securities have been converted or exchanged, and, at all times
subsequent to any such conversion or exchange, any securities into or for which
such securities have been converted or exchanged, and any security issued with
respect thereto upon any stock dividend, split or similar event until, in the
case of any such security, the earliest of (i) its effective registration under
the Securities Act and resale in accordance with the Registration Statement
covering it, (ii) expiration of the holding period that would be applicable
thereto under Rule 144(k) were it not held by an Affiliate of the Company or
(iii) its sale to the public pursuant to Rule 144.

         "Registration Expenses" means the expenses described in Section 5
hereof.

         "Registration Statement" means any registration statement of the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

         "Restricted Securities" has the meaning assigned to that term in Rule
144.

         "Rule 144" means Rule 144 under the Securities Act, as such Rule may be
amended from time to time, or any similar rule or regulation hereafter adopted
by the SEC.

         "Rule 144A" means Rule 144A under the Securities Act, as such Rule may
be amended from time to time, or any similar rule or regulation hereafter
adopted by the SEC.

         "SEC" means the U.S. Securities and Exchange Commission and any
successor agency.

         "Securities" means the 4 1/4% Convertible Subordinated Notes due 2008
of the Company to be purchased pursuant to the Purchase Agreement.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated by the SEC thereunder.

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         "Shelf Registration Statement" has the meaning specified in Section
2(a) hereof.

         "Subsequent Shelf Registration Statement" has the meaning specified in
Section 2(b) hereof.

         "TIA" means the Trust Indenture Act of 1939, as amended.

         "Trustee" means National City Bank (or any successor entity), the
Trustee under the Indenture.

         "Underlying Common Stock" means the Common Stock into which the
Securities are convertible or issued upon any such conversion.

         Section 2.        Shelf Registration. (a) The Company shall prepare
and file or cause to be prepared and filed with the SEC, as soon as practicable
but in any event by the date (the "Filing Deadline Date") ninety (90) days after
the Issue Date, a Registration Statement for an offering to be made on a delayed
or continuous basis pursuant to Rule 415 of the Securities Act (a "Shelf
Registration Statement") registering the resale from time to time by Holders
thereof of all of the Registrable Securities (the "Initial Shelf Registration
Statement"). The Initial Shelf Registration Statement shall be on Form S-3 or
another appropriate form permitting registration of such Registrable Securities
for resale by such Holders in accordance with the methods of distribution
elected by the Holders and set forth in the Initial Shelf Registration
Statement. The Company shall use its best efforts to cause the Initial Shelf
Registration Statement to be declared effective under the Securities Act as
promptly as is practicable but in any event by the date (the "Effectiveness
Deadline Date") that is one hundred and fifty (150) days after the Issue Date,
and to keep the Initial Shelf Registration Statement (or any Subsequent Shelf
Registration Statement) continuously effective under the Securities Act until
the expiration of the Effectiveness Period; provided, however, that no Holder
shall be entitled to have the Registrable Securities held by it covered by such
Shelf Registration Statement unless such Holder shall have provided a Notice and
Questionnaire in accordance with Section 2(d) and is in compliance with Section
4. None of the Company's security holders (other than the Holders of Registrable
Securities) shall have the right to include any of the Company's securities in
the Shelf Registration Statement.

         (b)      If the Initial Shelf Registration Statement or any Subsequent
Shelf Registration Statement ceases to be effective for any reason at any time
during the Effectiveness Period (other than because all Registrable Securities
registered thereunder shall have been sold pursuant thereto or shall have
otherwise ceased to be Registrable Securities), the Company shall use its best
efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within thirty (30) days of such
cessation of effectiveness amend the Shelf Registration Statement in a manner
reasonably expected to obtain the withdrawal of the order suspending the
effectiveness thereof, or file an additional Shelf Registration Statement
covering all of the securities that as of the date of such filing are
Registrable Securities (a "Subsequent Shelf Registration Statement"). If a
Subsequent Shelf Registration Statement is filed, the Company shall use its best
efforts to cause the Subsequent Shelf Registration Statement to become effective
as promptly as is practicable after such filing and to keep such Registration

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Statement (or another Subsequent Shelf Registration Statement) continuously
effective until the end of the Effectiveness Period.

         (c)      The Company shall supplement and amend the Shelf Registration
Statement if required by the rules, regulations or instructions applicable to
the registration form used by the Company for such Shelf Registration Statement,
if required by the Securities Act or, to the extent to which the Company does
not reasonably object, as reasonably requested by the Initial Purchasers or by
the Trustee on behalf of the registered Holders.

         (d)      Each Holder of Registrable Securities agrees that if such
Holder wishes to sell Registrable Securities pursuant to a Shelf Registration
Statement and related Prospectus, it will do so only in accordance with this
Section 2(d) and Section 3(i). Each Holder of Registrable Securities wishing to
sell Registrable Securities pursuant to a Shelf Registration Statement and
related Prospectus agrees to deliver a Notice and Questionnaire to the Company
at least three (3) Business Days prior to any intended distribution of
Registrable Securities under the Shelf Registration Statement; provided that,
Holders of Registrable Securities shall have at least twenty (20) Business Days
from the date on which the Notice and Questionnaire is first mailed to such
Holders to return a completed and signed Notice and Questionnaire to the
Company. From and after the date the Initial Shelf Registration Statement is
declared effective, the Company shall, as promptly as is practicable after the
date a Notice and Questionnaire is delivered, and in any event within three (3)
Business Days after such date, (i) if required by applicable law, file with the
SEC a post-effective amendment to the Shelf Registration Statement or prepare
and, if required by applicable law, file a supplement to the related Prospectus
or a supplement or amendment to any document incorporated therein by reference
or file any other required document so that the Holder delivering such Notice
and Questionnaire is named as a selling security holder in the Shelf
Registration Statement and the related Prospectus in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of the Registrable
Securities in accordance with applicable law and, if the Company shall file a
post-effective amendment to the Shelf Registration Statement, use its best
efforts to cause such post-effective amendment to be declared effective under
the Securities Act as promptly as is practicable, but in any event by the date
(the "Amendment Effectiveness Deadline Date") that is thirty (30) days after the
date such post-effective amendment is required by this clause to be filed; (ii)
provide such Holder copies of any documents filed pursuant to Section 2(d)(i);
and (iii) notify such Holder as promptly as practicable after the effectiveness
under the Securities Act of any post-effective amendment filed pursuant to
Section 2(d)(i); provided, that if such Notice and Questionnaire is delivered
during a Deferral Period, the Company shall so inform the Holder delivering such
Notice and Questionnaire and shall take the actions set forth in clauses (i),
(ii) and (iii) above upon expiration of the Deferral Period in accordance with
Section 3(i), provided, further, that if under applicable law the Company has
more than one option as to the type or manner of making any such filing, it will
make the required filing or filings in the manner or of a type that is
reasonably expected to result in the earliest availability of the Prospectus for
effecting resales of Registrable Securities. Notwithstanding anything contained
herein to the contrary, the Company shall be under no obligation to name any
Holder that is not a Notice Holder as a selling security holder in any
Registration Statement or related Prospectus; provided, however, that any Holder
that becomes a Notice Holder pursuant to the provisions of this Section 2(d)
(whether or not such Holder was a Notice Holder at the time the Registration
Statement was declared effective) shall

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be named as a selling security holder in the Registration Statement or related
Prospectus in accordance with the requirements of this Section 2(d).

         (e)      The parties hereto agree that the Holders of Registrable
Securities will suffer damages, and that it would not be feasible to ascertain
the extent of such damages with precision, if (i) the Initial Shelf Registration
Statement has not been filed on or prior to the Filing Deadline Date, (ii) the
Initial Shelf Registration Statement has not been declared effective under the
Securities Act on or prior to the Effectiveness Deadline Date, (iii) the Company
has failed to perform its obligations set forth in Section 2(d) hereof within
the time period required therein, (iv) the aggregate duration of Deferral
Periods in any period exceeds the number of days permitted in respect of such
period pursuant to Section 3(i) hereof or (v) the number of Deferral Periods in
any period exceeds the number permitted in respect of such periods pursuant to
Section 3(i) (each of the events of a type described in any of the foregoing
clauses (i) through (v) are individually referred to herein as an "Event," and
the Filing Deadline Date in the case of clause (i), the Effectiveness Deadline
Date in the case of clause (ii), the date by which the Company is required to
perform its obligations set forth in Section 2(d) in the case of clause (iii)
(including the filing of any post-effective amendment prior to the Amendment
Effectiveness Deadline Date), the date on which the aggregate duration of
Deferral Periods in any period exceeds the number of days permitted by Section
3(i) hereof in the case of clause (iv), and the date of the commencement of a
Deferral Period that causes the limit on the number of Deferral Periods in any
period under Section 3(i) hereof to be exceeded in the case of clause (v), being
referred to herein as an "Event Date"). Events shall be deemed to continue until
the "Event Termination Date," which shall be the following dates with respect to
the respective types of Events: the date the Initial Shelf Registration
Statement is filed in the case of an Event of the type described in clause (i),
the date the Initial Shelf Registration Statement is declared effective under
the Securities Act in the case of an Event of the type described in clause (ii),
the date the Company performs its obligations set forth in Section 2(d) in the
case of an Event of the type described in clause (iii) (including, without
limitation, the date the relevant post-effective amendment to the Shelf
Registration Statement is declared effective under the Securities Act),
termination of the Deferral Period that caused the limit on the aggregate
duration of Deferral Periods in a period set forth in Section 3(i) to be
exceeded in the case of the commencement of an Event of the type described in
clause (iv), and termination of the Deferral Period the commencement of which
caused the number of Deferral Periods in a period permitted by Section 3(i) to
be exceeded in the case of an Event of the type described in clause (v).

         Accordingly, commencing on (and including) any Event Date and ending on
(but excluding) the next date on which there are no Events that have occurred
and are continuing (a "Damages Accrual Period"), the Company agrees to pay, as
liquidated damages and not as a penalty, an amount (the "Liquidated Damages
Amount"), payable on the Damages Payment Dates to Record Holders of then
outstanding Securities that are Registrable Securities and of then outstanding
shares of Underlying Common Stock issued upon conversion of Securities that are
Registrable Securities, as the case may be, accruing, for each portion of such
Damages Accrual Period beginning on and including a Damages Payment Date (or, in
respect of the first time that the Liquidation Damages Amount is to be paid to
Holders on a Damages Payment Date as a result of the occurrence of any
particular Event, from the Event Date) and ending on but excluding the first to
occur of (A) the date of the end of the Damages Accrual Period or (B) the next
Damages Payment Date, at a rate per annum equal to one-quarter of one percent
(0.25%) for

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the first 90-day period from the Event Date, and thereafter at a rate per annum
equal to one-half of one percent (0.5%) of the aggregate Principal Amount of
such Securities, or the Conversion Price of such shares of Underlying Common
Stock if the Holder has converted such Securities into Underlying Common Stock,
in each case determined as of the Business Day immediately preceding the next
Damages Payment Date; provided, that in the case of a Damages Accrual Period
that is in effect solely as a result of an Event of the type described in clause
(iii) of the immediately preceding paragraph, such Liquidated Damages Amount
shall be paid only to the Holders that have delivered Notice and Questionnaires
that caused the Company to incur the obligations set forth in Section 2(d) the
non-performance of which is the basis of such Event; provided further, that any
Liquidated Damages Amount accrued with respect to any Securities or portion
thereof called for redemption on a redemption date or converted into Underlying
Common Stock on a conversion date prior to the Damages Payment Date, shall, in
any such event, be paid instead to the Holder who submitted such Securities or
portion thereof for redemption or conversion on the applicable redemption date
or conversion date, as the case may be, on such date (or promptly following the
conversion date, in the case of conversion). Notwithstanding the foregoing, no
Liquidated Damages Amounts shall accrue as to any Registrable Security from and
after the earlier of (x) the date such security is no longer a Registrable
Security and (y) expiration of the Effectiveness Period. The rate of accrual of
the Liquidated Damages Amount with respect to any period shall not exceed the
rate provided for in this paragraph notwithstanding the occurrence of multiple
concurrent Events. Following the cure of all Events requiring the payment by the
Company of Liquidated Damages Amounts to the Holders of Registrable Securities
pursuant to this Section, the accrual of Liquidated Damages Amounts will cease
(without in any way limiting the effect of any subsequent Event requiring the
payment of Liquidated Damages Amount by the Company).

         The Trustee shall be entitled, on behalf of Holders of Securities or
Underlying Common Stock, to seek any available remedy for the enforcement of
this Agreement, including for the payment of any Liquidated Damages Amount.
Notwithstanding the foregoing, the parties agree that the sole monetary damages
payable for a violation of the terms of this Agreement with respect to which
liquidated damages are expressly provided shall be such liquidated damages.
Nothing shall preclude a Notice Holder or Holder of Registrable Securities from
pursuing or obtaining specific performance or other equitable relief with
respect to this Agreement.

         All of the Company's obligations set forth in this Section 2(e) that
are outstanding with respect to any Registrable Security at the time such
security ceases to be a Registrable Security shall survive until such time as
all such obligations with respect to such security have been satisfied in full
(notwithstanding termination of this Agreement pursuant to Section 8(k)).

         The parties hereto agree that the liquidated damages provided for in
this Section 2(e) constitute a reasonable estimate of the damages that may be
incurred by Holders of Registrable Securities by reason of the failure of the
Shelf Registration Statement to be filed or declared effective or available for
effecting resales of Registrable Securities in accordance with the provisions
hereof.

         Section 3.        Registration Procedures. In connection with the
registration obligations of the Company under Section 2 hereof, the Company
shall:

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         (a)      Before filing any Registration Statement or Prospectus or any
amendments or supplements thereto with the SEC, furnish to the Initial
Purchasers copies of all such documents proposed to be filed and use its best
efforts to reflect in each such document when so filed with the SEC such
comments as the Initial Purchasers reasonably shall propose within three (3)
Business Days of the delivery of such copies to the Initial Purchasers.

         (b)      Prepare and file with the SEC such amendments and
post-effective amendments to each Registration Statement as may be necessary to
keep such Registration Statement continuously effective for the applicable
period specified in Section 2(a); cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and comply with the provisions of the Securities Act applicable
to it with respect to the disposition of all securities covered by such
Registration Statement during the Effectiveness Period in accordance with the
intended methods of disposition by the sellers thereof set forth in such
Registration Statement as so amended or such Prospectus as so supplemented.

         (c)      As promptly as practicable give notice to the Notice Holders
and the Initial Purchasers (i) when any Prospectus, Prospectus supplement,
Registration Statement or post-effective amendment to a Registration Statement
has been filed with the SEC and, with respect to a Registration Statement or any
post-effective amendment, when the same has been declared effective, (ii) of any
request, following the effectiveness of the Initial Shelf Registration Statement
under the Securities Act, by the SEC or any other federal or state governmental
authority for amendments or supplements to any Registration Statement or related
Prospectus or for additional information, (iii) of the issuance by the SEC or
any other federal or state governmental authority of any stop order suspending
the effectiveness of any Registration Statement or the initiation or threatening
of any proceedings for that purpose, (iv) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose, (v) of the occurrence of (but not the nature of or details concerning)
a Material Event (provided, however, that no notice by the Company shall be
required pursuant to this clause (v) in the event that the Company either
promptly files a Prospectus supplement to update the Prospectus or a Form 8-K or
other appropriate Exchange Act report that is incorporated by reference into the
Registration Statement, which, in either case, contains the requisite
information with respect to such Material Event that results in such
Registration Statement no longer containing any untrue statement of material
fact or omitting to state a material fact necessary to make the statements
contained therein not misleading) and (vi) of the determination by the Company
that a post-effective amendment to a Registration Statement will be filed with
the SEC, which notice may, at the discretion of the Company (or as required
pursuant to Section 3(i)), state that it constitutes a Deferral Notice, in which
event the provisions of Section 3(i) shall apply.

         (d)      Use its best efforts to prevent the issuance, and if issued to
obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement or the lifting of any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction in which they have been qualified for sale, in either case at
the earliest possible moment.

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         (e)      If reasonably requested by the Initial Purchasers or any
Notice Holder, promptly incorporate in a Prospectus supplement or post-effective
amendment to a Registration Statement such information as the Initial Purchasers
or such Notice Holder shall, on the basis of an opinion of nationally-recognized
counsel experienced in such matters, determine to be required to be included
therein by applicable law and make any required filings of such Prospectus
supplement or such post-effective amendment; provided, that the Company shall
not be required to take any actions under this Section 3(e) that are not, in the
reasonable opinion of counsel for the Company, in compliance with applicable
law.

         (f)      Furnish to each Notice Holder and the Initial Purchasers, upon
their request and without charge, at least one (1) conformed copy of the
Registration Statement and any amendment thereto, including financial statements
but excluding schedules, all documents incorporated or deemed to be incorporated
therein by reference and all exhibits (unless requested in writing to the
Company by such Notice Holder or the Initial Purchasers, as the case may be).

         (g)      During the Effectiveness Period, deliver to each Notice Holder
in connection with any sale of Registrable Securities pursuant to a Registration
Statement, without charge, as many copies of the Prospectus or Prospectuses
relating to such Registrable Securities (including each preliminary prospectus)
and any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Company hereby consents (except during such periods that a
Deferral Notice is outstanding and has not been revoked) to the use of such
Prospectus or each amendment or supplement thereto by each Notice Holder in
connection with any offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth
therein.

         (h)      Prior to any public offering of the Registrable Securities
pursuant to the Shelf Registration Statement, register or qualify or cooperate
with the Notice Holders in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests
in writing (which request may be included in the Notice and Questionnaire);
prior to any public offering of the Registrable Securities pursuant to the Shelf
Registration Statement, use its best efforts to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period
in connection with such Notice Holder's offer and sale of Registrable Securities
pursuant to such registration or qualification (or exemption therefrom) and do
any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of such Registrable Securities in the manner
set forth in the relevant Registration Statement and the related Prospectus;
provided, that the Company will not be required to (i) qualify as a foreign
corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Agreement or (ii) take any action
that would subject it to general service of process in suits or to taxation in
any such jurisdiction where it is not then so subject.

         (i)      Upon (A) the issuance by the SEC of a stop order suspending
the effectiveness of the Shelf Registration Statement or the initiation of
proceedings with respect to the Shelf Registration Statement under Section 8(d)
or 8(e) of the Securities Act, (B) the occurrence of any event or the existence
of any fact (a "Material Event") as a result of which any Registration Statement
shall contain any untrue statement of a material fact or omit to state any

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material fact required to be stated therein or necessary to make the statements
therein not misleading, or any Prospectus shall contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or (C) the occurrence or existence
of any pending corporate development that, in the discretion of the Company,
makes it appropriate to suspend the availability of the Shelf Registration
Statement and the related Prospectus, (i) in the case of clause (B) above,
subject to the next sentence, promptly prepare and file a post-effective
amendment to such Registration Statement or a supplement to the related
Prospectus or any document incorporated therein by reference or file any other
required document that would be incorporated by reference into such Registration
Statement and Prospectus so that such Registration Statement does not contain
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading, and such Prospectus does not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, as thereafter delivered to the
purchasers of the Registrable Securities being sold thereunder, and, in the case
of a post-effective amendment to a Registration Statement, subject to the next
sentence, use its best efforts to cause it to be declared effective as promptly
as is reasonably practicable, and (ii) give notice to the Notice Holders that
the availability of the Shelf Registration Statement is suspended (a "Deferral
Notice") and, upon receipt of any Deferral Notice, each Notice Holder agrees not
to sell any Registrable Securities pursuant to the Registration Statement until
such Notice Holder's receipt of copies of the supplemented or amended Prospectus
provided for in clause (i) above, or until it is advised in writing by the
Company that the Prospectus may be used, and has received copies of any
additional or supplemental filings that are incorporated or deemed incorporated
by reference in such Prospectus. The Company will use its best efforts to ensure
that the use of the Prospectus may be resumed (x) in the case of clause (A)
above, as promptly as is practicable, (y) in the case of clause (B) above, as
soon as, in the sole judgment of the Company, public disclosure of such Material
Event would not be prejudicial to or contrary to the interests of the Company
or, if necessary to avoid unreasonable burden or expense, as soon as reasonably
practicable thereafter and (z) in the case of clause (C) above, as soon as, in
the discretion of the Company, such suspension is no longer appropriate. The
period during which the availability of the Registration Statement and any
Prospectus is suspended (the "Deferral Period") without the Company incurring
any obligation to pay liquidated damages pursuant to Section 2(e) shall not
exceed forty-five (45) days in any three (3) month period and ninety (90) days
in any twelve (12) month period.

         (j)      Make available for inspection during normal business hours by
a representative for the Notice Holders of such Registrable Securities and any
broker-dealers, attorneys and accountants retained by such Notice Holders, all
relevant financial and other records, pertinent corporate documents and
properties of the Company and its subsidiaries, and cause the appropriate
executive officers, directors and designated employees of the Company and its
subsidiaries to make available for inspection during normal business hours all
relevant information reasonably requested by such representative for the Notice
Holders or any such broker-dealers, attorneys or accountants in connection with
such disposition, in each case as is customary for similar "due diligence"
examinations; provided, however, that such persons shall first agree in writing
with the Company that any information that is reasonably and in good faith

                                       10
<PAGE>

designated by the Company in writing as confidential at the time of delivery of
such information shall be kept confidential by such persons and shall be used
solely for the purposes of exercising rights under this Agreement, unless (i)
disclosure of such information is required by court or administrative order or
is necessary to respond to inquiries of regulatory authorities, (ii) disclosure
of such information is required by law (including any disclosure requirements
pursuant to federal securities laws in connection with the filing of any
Registration Statement or the use of any Prospectus referred to in this
Agreement), (iii) such information becomes generally available to the public
other than as a result of a disclosure or failure to safeguard by any such
person or (iv) such information becomes available to any such person from a
source other than the Company and such source is not bound by a confidentiality
agreement or is not otherwise under a duty of trust to the Company; and provided
further that the foregoing inspection and information gathering shall, to the
greatest extent possible, be coordinated on behalf of all the Notice Holders and
the other parties entitled thereto by the counsel referred to in Section 5.

         (k)      Comply with all applicable rules and regulations of the SEC
and make generally available to its securityholders earning statements (which
need not be audited) satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder (or any similar rule promulgated under
the Securities Act) no later than 45 days after the end of any 12-month period
(or 90 days after the end of any 12-month period if such period is a fiscal
year) commencing on the first day of the first fiscal quarter of the Company
commencing after the effective date of a Registration Statement, which
statements shall cover said 12-month periods.

         (l)      Cooperate with each Notice Holder to facilitate the timely
preparation and delivery of certificates representing Registrable Securities
sold pursuant to a Registration Statement, and cause such Registrable Securities
to be in such denominations as are permitted by the Indenture and registered in
such names as such Notice Holder may request in writing at least two Business
Days prior to any sale of such Registrable Securities.

         (m)      Provide a CUSIP number for all Registrable Securities covered
by each Registration Statement not later than the effective date of such
Registration Statement and provide the Trustee for the Securities and the
transfer agent for the with printed certificates for the Registrable Securities
that are in a form eligible for deposit with The Depository Trust Company.

         (n)      Use its best efforts to provide such information as is
required for any filings required to be made with the National Association of
Securities Dealers, Inc.

         (o)      Upon (i) the filing of the Initial Shelf Registration
Statement and (ii) the effectiveness of the Initial Shelf Registration
Statement, announce the same, in each case by release to Reuters Economic
Services and Bloomberg Business News.

         (p)      Enter into such customary agreements and take all such other
necessary actions in connection therewith (including those requested by the
holders of a majority of the Registrable Securities being sold) in order to
expedite or facilitate disposition of such Registrable Securities.

                                       11
<PAGE>

         (q)      Cause the Indenture to be qualified under the TIA not later
than the effective date of any Registration Statement; and in connection
therewith, cooperate with the Trustee to effect such changes to the Indenture as
may be required for the Indenture to be so qualified in accordance with the
terms of the TIA and execute, and use its best efforts to cause the Trustee to
execute, all documents as may be required to effect such changes, and all other
forms and documents required to be filed with the SEC to enable the Indenture to
be so qualified in a timely manner.

         Section 4.        Holder's Obligations. Each Holder agrees, by
acquisition of the Registrable Securities, that no Holder of Registrable
Securities shall be entitled to sell any of such Registrable Securities pursuant
to a Registration Statement or to receive a Prospectus relating thereto, unless
such Holder has furnished the Company with a Notice and Questionnaire as
required pursuant to Section 2(d) hereof (including the information required to
be included in such Notice and Questionnaire) and the information set forth in
the next sentence. Each Notice Holder agrees promptly to furnish to the Company
all information required to be disclosed in order to make the information
previously furnished to the Company by such Notice Holder not misleading and any
other information regarding such Notice Holder and the distribution of such
Registrable Securities as may be required to be disclosed in the Registration
Statement under applicable law.

         Section 5.        Registration Expenses. The Company shall bear all
fees and expenses incurred in connection with the performance by the Company of
its obligations under Sections 2 and 3 of this Agreement whether or not any of
the Registration Statements are declared effective. Such fees and expenses shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required to be
made with the National Association of Securities Dealers, Inc. and (y) of
compliance with federal and state securities or Blue Sky laws (including,
without limitation, fees and disbursements of the counsel specified in the next
sentence in connection with Blue Sky qualifications of the Registrable
Securities under the laws of such jurisdictions as the Notice Holders of a
majority of the Registrable Securities being sold pursuant to a Registration
Statement may designate), (ii) printing expenses (including, without limitation,
expenses of printing certificates for Registrable Securities in a form eligible
for deposit with The Depository Trust Company), (iii) duplication expenses
relating to copies of any Registration Statement or Prospectus delivered to any
Holders hereunder, (iv) fees and disbursements of counsel for the Company in
connection with the Shelf Registration Statement, and (v) fees and disbursements
of the Trustee and its counsel and of the registrar and transfer agent for the
Common Stock. In addition, the Company shall bear or reimburse the Notice
Holders for the fees and disbursements of one firm of legal counsel for the
Holders, which shall initially be Shearman & Sterling, but which may, upon the
written consent of the Initial Purchasers (which shall not be unreasonably
withheld), be another nationally recognized law firm experienced in securities
law matters designated by the Company. In addition, the Company shall pay the
internal expenses of the Company (including, without limitation, all salaries
and expenses of officers and employees performing legal or accounting duties),
the expense of any annual audit, the fees and expenses incurred in connection
with the listing of the Registrable Securities on any securities exchange on
which similar securities of the Company are then listed and the fees and
expenses of any person, including special experts, retained by the Company.

                                       12
<PAGE>

         Section 6.        Indemnification; Contribution. (a) The Company agrees
to indemnify and hold harmless the Initial Purchasers and each holder of
Registrable Securities and each person, if any, who controls the Initial
Purchasers or any holder of Registrable Securities within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, as follows:

                  (i)   against any and all loss, liability, claim, damage and
         expense whatsoever, as incurred, arising out of any untrue statement or
         alleged untrue statement of a material fact contained in the
         Registration Statement (or any amendment thereto), or the omission or
         alleged omission therefrom of a material fact necessary in order to
         make the statements therein, in light of the circumstances under which
         they were made, not misleading or arising out of any untrue statement
         or alleged untrue statement of a material fact included in any
         preliminary prospectus or the Prospectus (or any amendment or
         supplement thereto), or the omission or alleged omission therefrom of a
         material fact necessary in order to make the statements therein, in the
         light of the circumstances under which they were made, not misleading;

                  (ii)  against any and all loss, liability, claim, damage and
         expense whatsoever, as incurred, to the extent of the aggregate amount
         paid in settlement of any litigation, or any investigation or
         proceeding by any governmental agency or body, commenced or threatened,
         or of any claim whatsoever based upon any such untrue statement or
         omission, or any such alleged untrue statement or omission, provided
         that (subject to Section 6(d) below) any such settlement is effected
         with the prior written consent of the Company; and

                  (iii) against any and all expense whatsoever, as incurred
         (including the fees and disbursements of counsel), reasonably incurred
         in investigating, preparing or defending against any litigation, or any
         investigation or proceeding by any governmental agency or body,
         commenced or threatened, or any claim whatsoever based upon any such
         untrue statement or omission, or any such alleged untrue statement or
         omission, to the extent that any such expense is not paid under (i) or
         (ii) above;

provided, however, that this indemnity shall not apply to any loss, liability,
claim, damage or expense to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information furnished to the Company by the Initial
Purchasers or such holder of Registrable Securities (which also acknowledges the
indemnity provisions herein) and each person, if any, who controls the Initial
Purchasers or any such holder of Registrable Securities expressly for use in the
Registration Statement (or any amendment thereto), or any preliminary prospectus
or the Prospectus (or any amendment or supplement thereto).

         (b)      In connection with any Shelf Registration in which a holder,
including, without limitation, the Initial Purchasers, of Registrable Securities
is participating, in furnishing information relating to such holder of
Registrable Securities to the Company in writing expressly for use in such
Registration Statement, any preliminary prospectus, the Prospectus or any
amendments or supplements thereto, the holders of such Registrable Securities
agree, severally and not jointly, to indemnify and hold harmless the Initial
Purchasers and each person, if any,

                                       13
<PAGE>

who controls the Initial Purchasers within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act and the Company, and each
person, if any, who controls the Company within the meaning of either such
Section, against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section, as
incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement (or any
amendment thereto), or any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such holder of Registrable Securities
(which also acknowledges the indemnity provisions herein) and each person, if
any, who controls any such holder of Registrable Securities expressly for use in
the Registration Statement (or any amendment thereto) or such preliminary
prospectus or the Prospectus (or any amendment or supplement thereto).

         Each of the Initial Purchasers agrees to indemnify and hold harmless
the Company, the holders of Registrable Securities, and each person, if any, who
controls the Company or any holder of Registrable Securities within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act
against any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Registration Statement (or any amendment thereto), or any
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished
to the Company by the Initial Purchasers expressly for use in the Registration
Statement (or any amendment thereto) or such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto).

         (c)      Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. An indemnifying
party may participate at its own expense in the defense of any such action;
provided, however, that counsel to the indemnifying party shall not (except with
the consent of the indemnified party) also be counsel to the indemnified party.
In no event shall the indemnifying parties be liable for fees and expenses of
more than one counsel (in addition to any local counsel) separate from their own
counsel for all indemnified parties in connection with any one action or
separate but similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 hereof
(whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.

                                       14
<PAGE>

         (d)      If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 6(a)(ii) effected without its
written consent if (i) such settlement is entered into more than 45 days after
receipt by such indemnifying party of aforesaid request, (ii) such indemnifying
party shall have received notice of the terms of such settlement at least 30
days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such
request prior to the date of such settlement.

         (e)      If the indemnification provided for in this Section 6 is for
any reason unavailable to or insufficient to hold harmless an indemnified party
in respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative fault of the indemnifying party or parties on the one hand and of
the indemnified party on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

         The relative fault of the Company on the one hand and the holders of
the Registrable Securities or the Initial Purchasers on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company or by the
holder of the Registrable Securities or the Initial Purchasers and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 6(e) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this Section 6(e). The
aggregate amount of losses, liabilities, claims, damages, and expenses incurred
by an indemnified party and referred to above in this Section 6(e) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

         Notwithstanding the provisions of this Section 6, neither the holder of
any Registrable Securities nor the Initial Purchasers, shall be required to
indemnify or contribute any amount in excess of the amount by which the total
price at which the Registrable Securities sold by such holder of Registrable
Securities or underwritten by the Initial Purchasers, as the case may be, and
distributed to the public were offered to the public exceeds the amount of any
damages that such holder of Registrable Securities or the Initial Purchasers has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

                                       15
<PAGE>

         No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

         For purposes of this Section 6(e), each person, if any, who controls
the Initial Purchasers or any holder of Registrable Securities within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
shall have the same rights to contribution as the Initial Purchasers or such
holder, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to contribution as the Company.

         Section 7.        Information Requirements. The Company covenants that,
if at any time before the end of the Effectiveness Period the Company is not
subject to the reporting requirements of the Exchange Act, it will cooperate
with any Holder of Registrable Securities and take such further reasonable
action as any Holder of Registrable Securities may reasonably request in writing
(including, without limitation, making such reasonable representations as any
such Holder may reasonably request), all to the extent required from time to
time to enable such Holder to sell Registrable Securities without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144 and Rule 144A under the Securities Act and customarily taken in
connection with sales pursuant to such exemptions. Upon the written request of
any Holder of Registrable Securities, the Company shall deliver to such Holder a
written statement as to whether it has complied with such filing requirements,
unless such a statement has been included in the Company's most recent report
required to be filed and filed pursuant to Section 13 or Section 15(d) of
Exchange Act. Notwithstanding the foregoing, nothing in this Section 7 shall be
deemed to require the Company to register any of its securities (other than the
Common Stock) under any section of the Exchange Act.

         Section 8.        Miscellaneous.

         (a)      No Conflicting Agreements. The Company is not, as of the date
hereof, a party to, nor shall it, on or after the date of this Agreement, enter
into, any agreement with respect to its securities that conflicts with the
rights granted to the Holders of Registrable Securities in this Agreement. The
Company represents and warrants that the rights granted to the Holders of
Registrable Securities hereunder do not in any way conflict with the rights
granted to the holders of the Company's securities under any other agreements.

         (b)      Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company has obtained the written consent of Holders
of a majority of the then outstanding Underlying Common Stock constituting
Registrable Securities (with Holders of Securities deemed to be the Holders, for
purposes of this Section, of the number of outstanding shares of Underlying
Common Stock into which such Securities are or would be convertible or
exchangeable as of the date on which such consent is requested). Notwithstanding
the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders of Registrable

                                       16
<PAGE>

Securities may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such Registration
Statement; provided, that the provisions of this sentence may not be amended,
modified, or supplemented except in accordance with the provisions of the
immediately preceding sentence. Each Holder of Registrable Securities
outstanding at the time of any such amendment, modification, supplement, waiver
or consent or thereafter shall be bound by any such amendment, modification,
supplement, waiver or consent effected pursuant to this Section 8(b), whether or
not any notice, writing or marking indicating such amendment, modification,
supplement, waiver or consent appears on the Registrable Securities or is
delivered to such Holder.

         (c)      Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by
courier guaranteeing overnight delivery or by first-class mail, return receipt
requested, and shall be deemed given (i) when made, if made by hand delivery,
(ii) upon confirmation, if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier, if made by overnight courier or (iv) on the
date indicated on the notice of receipt, if made by first-class mail, to the
parties as follows:

         (w) if to a Holder of Registrable Securities, at the most current
address given by such Holder to the Company in a Notice and Questionnaire or any
amendment thereto;

         (x) if to the Company, to:

         Province Healthcare Company
         105 Westwood Place
         Suite 400
         Brentwood, TN 37027
         Attention:  Howard T. Wall III, Esq.
         Telecopy No.:  (615) 370-1377

         and

         (y) if to the Initial Purchasers, to:

         Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated
         World Financial Center
         North Tower
         250 Vesey Street
         New York, New York  10281
         Attention:  Syndicate Department
         Telecopy No.:  (212) 738-1069

or to such other address as such person may have furnished to the other persons
identified in this Section 8(c) in writing in accordance herewith.

         (d)      Approval of Holders. Whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required
hereunder, the Registrable Securities held by the Company or its Affiliates
(other than the Initial Purchasers or subsequent Holders of Registrable
Securities if such subsequent Holders are deemed to be such affiliates solely by

                                       17
<PAGE>

reason of their holdings of such Registrable Securities) shall not be counted in
determining whether such consent or approval was given by the Holders of such
required percentage.

         (e)      Successors and Assigns. Any person who purchases any
Registrable Securities from the Initial Purchasers shall be deemed, for purposes
of this Agreement, to be an assignee of the Initial Purchasers. This Agreement
shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties and shall inure to the benefit of and be binding upon each
Holder of any Registrable Securities.

         (f)      Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

         (g)      Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

         (h)      Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

         (i)      Severability. If any term, provision, covenant or restriction
of this Agreement is held to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated thereby, and the parties hereto shall use their best efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction, it being intended that all of the rights and privileges of the
parties shall be enforceable to the fullest extent permitted by law.

         (j)      Entire Agreement. This Agreement is intended by the parties as
a final expression of their agreement and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and the registration rights
granted by the Company with respect to the Registrable Securities. Except as
provided in the Purchase Agreement, there are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein,
with respect to the registration rights granted by the Company with respect to
the Registrable Securities. This Agreement supersedes all prior agreements and
undertakings among the parties with respect to such registration rights.

         (k)      Termination. This Agreement and the obligations of the parties
hereunder shall terminate upon the expiration of the Effectiveness Period,
except for any liabilities or obligations under Sections 4, 5 or 6 hereof and
the obligations to make payments of and provide for liquidated damages under
Section 2(e) hereof to the extent such damages accrue prior to the end of the
Effectiveness Period, each of which shall remain in effect in accordance with
its terms.

         [Remainder of this page intentionally left blank]

                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

PROVINCE HEALTHCARE COMPANY

By:  /s/ Martin S. Rash
   -----------------------------------------
   Name:   Martin S. Rash
   Title:  Chief Executive Officer

Confirmed and accepted as of the date first above written:

MERRILL LYNCH & CO.
     MERRILL LYNCH, PIERCE, FENNER & SMITH
                  INCORPORATED
FIRST UNION SECURITIES, INC.
UBS WARBURG LLC
BANC OF AMERICA SECURITIES LLC

By:   MERRILL LYNCH & CO.
         MERRILL LYNCH, PIERCE, FENNER & SMITH
                  INCORPORATED

By:  /s/ James D. Forbes
   -----------------------------------------
     Name:   James D. Forbes
     Title:  Director<PAGE>

                                                                   EXHIBIT 10.19

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement"), dated as of February 7,
2001, is by and between IASIS Healthcare Corporation, a Delaware corporation
(the "Company"), and David R. White (the "Executive").

         WHEREAS, the Executive has experience beneficial to the Company's
operations, management and business development of acute care hospitals,
outpatient facilities and ancillary medical services (the "Business"); and

         WHEREAS, the Company desires that the Executive serve as Chairman of
the Board of Directors of the Company (the "Board") and Chief Executive Officer
of the Company and the Executive desires to hold such positions under the terms
and conditions of this Agreement; and

         WHEREAS, the parties desire to enter into this Agreement setting forth
the terms and conditions of the employment relationship of the Executive with
the Company.

         NOW, THEREFORE, intending to be legally bound hereby, the parties agree
as follows:

         1.       Employment. The Company hereby employs the Executive and the
Executive hereby accepts employment with the Company, upon the terms and subject
to the conditions set forth herein.

         2.       Term.

                  (a)      Subject to termination pursuant to Section 10 hereof,
the term of the employment by the Company of the Executive pursuant to this
Agreement (as the same may be extended, the "Term") shall commence effective as
of December 1, 2000 (the "Effective Date"), and terminate on the fifth
anniversary thereof.

                  (b)      Commencing on the fourth anniversary of the Effective
Date and on each subsequent anniversary thereof, the Term shall automatically be
extended for a period of one (1) additional year following the expiration of the
otherwise applicable Term unless, not later than ninety (90) days prior to any
such anniversary date, either party hereto shall have notified the other party
hereto in writing that such extension shall not take effect.

         3.       Position; Location. During the Term, the Executive shall serve
as Chairman of the Board and Chief Executive Officer of the Company, supervising
the conduct of the business and affairs of the Company and performing such other
duties as the Board shall determine, which duties shall not be materially
inconsistent with the duties to be performed by executives holding similar
offices in similarly-sized healthcare corporations. The Executive shall report
directly to the Board. The Company agrees to nominate the Executive for a
position on the Board at each election of directors held during the Term, and
the Executive agrees to serve, without any additional compensation (other than
customary director fees paid or benefits conferred as and to the extent paid to
or conferred on members of the board of directors who are members of management
or designees of substantial stockholders of the Company), as a director on the
Board and the board of directors of any subsidiary of the Company, and/or in one
or more chief executive officer positions with any subsidiary of the Company.
The parties acknowledge and agree that during the Term (i) the
<PAGE>
Executive's principal office will not be moved to a location more than 20 miles
from Metropolitan Nashville and Davidson County, Tennessee without his approval
and (ii) the Company shall maintain, in the organizational documents thereof,
indemnification provisions providing for the maximum indemnification permitted
by applicable law of the Executive by the Company for actions taken in his
capacity as an officer, director or employee thereof.

         4.       Duties. During the Term, the Executive shall devote
substantially all of his time and attention during normal business hours to the
business and affairs of the Company. Notwithstanding the foregoing, the
Executive may serve as a director of other entities; provided that such entities
do not directly compete with the Company in any material respect; and provided,
further, that the Executive may serve as a director of no more than three for
profit entities at any time.

         5.       Salary and Bonus.

                  (a)      During the Term, the Company shall pay to the
Executive a base salary at the rate of $625,000 per year. Commencing on or
before the first anniversary of the Effective Date, the Board shall review the
base salary annually and may increase such amount from time to time as it may
deem advisable (such salary, as the same may be increased, the "Base Salary").
The Base Salary shall be payable to the Executive in substantially equal
installments in accordance with the Company's normal payroll practices.

                  (b)      For the Company's fiscal year ending September 30,
2001, and for each fiscal year thereafter during the Term, the Executive shall
be eligible to receive an annual cash bonus equal to up to two hundred percent
(200%) of the Base Salary, subject to the terms of the Company's executive bonus
program, the principal terms of which are set forth on Exhibit A hereto (the
"Bonus Plan"), or, to the extent more favorable to the Executive, other
incentive compensation plan established by the Board for the Company's senior
executive officers, as either of the same may be amended from time to time
(provided that no such amendment or alternative plan shall materially diminish
the benefits available to the Executive upon satisfaction of the conditions of
such plan).

         6.       Stock Option Plan; Initial Grant of Options. Reference is made
to the IASIS Healthcare Corporation 2000 Stock Option Plan, a copy of which is
set forth as Exhibit B hereto (the "Stock Option Plan"). As of the Effective
Date, the Company granted the Executive options under the Stock Option Plan to
purchase 61,247.1 shares of common stock of the Company on the terms set forth
in the Stock Option Agreement set forth as Exhibit C hereto. Thereafter during
the Term, the Executive shall be eligible to participate in the Stock Option
Plan or, to the extent more favorable to the Executive, other equity plans
established by the Board for the Company's senior executive officers, as the
same may be amended from time to time (provided that no such amendment shall
materially diminish the benefits to Executive hereunder), as and to the extent
other senior executive officers participate in the same.

         7.       Vacation, Holidays and Sick Leave. During the Term, the
Executive shall be entitled to paid vacation, paid holidays and sick leave in
accordance with the Company's standard policies for its senior executive
officers; provided that the Executive shall during each year of the Term be
entitled to at least six (6) weeks of such vacation, which shall not accrue from
year to year.

         8.       Business Expenses. The Executive shall be reimbursed for all
reasonable and necessary business expenses incurred by him in connection with
his employment (including, without limitation, expenses for travel and
entertainment incurred in conducting or promoting business for

                                       2
<PAGE>
the Company) upon timely submission by the Executive of receipts and other
documentation in accordance with the Company's normal expense reimbursement
policies.

         9.       Other Benefits. During the Term, the Executive shall be
eligible to participate fully in all health and other employee benefit
arrangements available to senior executive officers of the Company generally.

         10.      Termination of Agreement. The Executive's employment by the
Company pursuant to this Agreement shall not be terminated prior to the end of
the Term hereof except as set forth in this Section 10.

                  (a)      By Mutual Consent. The Executive's employment
pursuant to this Agreement may be terminated at any time by the mutual written
agreement of the Company and the Executive.

                  (b)      Death. The Executive's employment pursuant to this
Agreement shall be terminated upon the death of the Executive, in which event
the Executive's spouse or heirs shall receive (i) all Base Salary and benefits
to be paid or provided to the Executive under this Agreement through the Date of
Termination (as defined in Section 10(h) hereof), (ii) an amount equal to one
hundred percent (100%) of the Executive's Base Salary at the then-current rate
of Base Salary and (iii) to the extent applicable, an amount equal to the pro
rata bonus (the "Pro Rata Bonus") determined by comparing the Company's actual
aggregate earnings before interest, taxes, depreciation and amortization
("EBITDA") for the period beginning on the first day of the fiscal year during
which the Date of Termination occurs and ending on the last day of the month in
which the Date of Termination occurs (such period, the "Bonus Measuring
Period"), with the aggregate budgeted EBITDA as reflected in the monthly budgets
prepared by the Company and accepted by the Board with respect to such period.
The Pro Rata Bonus shall be in an amount equal to the product of (I) a fraction,
the numerator of which equals the number of months in the Bonus Measuring Period
and the denominator of which equals twelve and (II) the bonus set forth in the
Bonus Plan for the fiscal year in which the Date of Termination occurs, treating
the Bonus Measuring Period as if it was the full fiscal year for purposes of
determining the Executive's bonus percentage. The parties acknowledge that Annex
I sets forth certain examples of the calculation of the Pro Rata Bonus. In the
event that the Executive's spouse or heirs are entitled to receive a payment
with respect to the Pro Rata Bonus, they shall also be entitled to an additional
severance amount equal to one hundred percent (100%) of the Pro Rata Bonus. All
of the payments required to be paid pursuant to this paragraph 10(b) shall be
paid to the Executive's spouse or heirs no later than ten (10) days following
the Date of Termination; provided, however, that any Pro Rata Bonus and any
additional severance amount related thereto shall be paid to the Executive's
spouse or heirs no later than five (5) days following the determination of the
amount of such payments, if any. The Company will also provide the Executive's
eligible dependents continued health and medical benefits as contemplated by
Section 9 hereof through the date one (1) year after the Date of Termination;
the Company may satisfy this obligation by paying such dependents' health and
medical continuation coverage ("COBRA") premium payments (with the dependents
paying the portion of such COBRA payments that Executive was required to pay
with respect to such dependents prior to the Date of Termination). Additionally,
in the event that the Executive's employment is terminated pursuant to this
Section 10(b), all of the Executive's options to purchase shares of capital
stock of the Company which are unvested as of the Date of Termination but
otherwise scheduled to vest on the first vesting date scheduled to occur
following the Date of Termination, shall immediately vest and become exercisable
on the Date of Termination and all remaining unvested options shall terminate as
of the

                                       3
<PAGE>
Date of Termination. All of the Executive's options to purchase capital stock of
the Company which are vested as of the Date of Termination or become vested
pursuant to the immediately preceding sentence may be exercised by the
Executive's spouse or heirs within one (1) year following the Date of
Termination and shall then terminate; provided, however, that in the event that
the Executive's spouse or heirs are entitled to receive a payment with respect
to the Pro Rata Bonus, all of such vested options may be exercised by the
Executive's spouse or heirs within two (2) years following the Date of
Termination and shall then terminate.

                  (c)      Disability. The Executive's employment pursuant to
this Agreement may be terminated by written notice to the Executive by the
Company or to the Company by the Executive in the event that (i) the Executive
becomes unable to perform his duties as set forth in Section 3 by reason of
physical or mental illness or accident for any six (6) consecutive month period
or (ii) the Company receives written opinions from both a physician for the
Company and a physician for the Executive that the Executive will be so
disabled. In the event the Executive's employment is terminated pursuant to this
Section 10(c), the Executive shall be entitled to receive (A) all Base Salary
and benefits to be paid or provided to the Executive under this Agreement
through the Date of Termination, (B) an amount equal to one hundred percent
(100%) of the Executive's Base Salary at the then-current rate of Base Salary;
provided, however, that in the event that the Date of Termination is the date of
delivery of the last physician's opinion referred to in Section 10(c)(ii), the
payment with respect to Base Salary, together with all Base Salary paid to the
Executive following the first date that Executive was unable to perform his
duties set forth in Section 3, shall equal one hundred and fifty percent (150%)
of Executive's Base Salary and; provided, further, that amounts payable to the
Executive under this Section 10(c) shall be reduced by the proceeds of any short
or long-term disability payments to which the Executive may be entitled during
such period under policies maintained at the expense of the Company as and to
the extent such disability payments compensate the insured for lost wages
resulting from the disability, and (C) to the extent applicable, an amount equal
to the Pro Rata Bonus. In the event that the Executive is entitled to receive a
payment with respect to the Pro Rata Bonus, he shall also be entitled to an
additional severance amount equal to one hundred percent (100%) of the Pro Rata
Bonus. All of the payments required to be paid pursuant to this Section 10(c)
shall be paid to the Executive no later than ten (10) days following the Date of
Termination; provided, however, that any Pro Rata Bonus and any additional
severance amount related thereto shall be paid to the Executive no later than
five (5) days following the determination of the amount of such payments, if
any. The Company will also provide the Executive and his eligible dependents
continued health and medical benefits as contemplated by Section 9 hereof
through the date one (1) year after the Date of Termination (provided, however,
that in the event that the Date of Termination is the date of delivery of the
last physician's opinion referred to in Section 10(c)(ii), the Company will
provide such health and medical benefits through the date that is eighteen (18)
months following the first date that Executive was unable to perform his duties
as set forth in Section 3); the Company may satisfy this obligation by paying
COBRA premium payments with respect to Executive and his eligible dependents
(with the Executive paying the portion of such COBRA payments that Executive was
required to pay prior to the Date of Termination). Additionally, in the event
that the Executive's employment is terminated pursuant to this Section 10(c),
all of the Executive's options to purchase shares of capital stock of the
Company which are unvested as of the Date of Termination but otherwise scheduled
to vest on the first vesting date scheduled to occur following the Date of
Termination, shall immediately vest and become exercisable on the Date of
Termination and all remaining unvested options shall terminate as of the Date of
Termination. All of the Executive's options to purchase capital stock of the
Company which are vested as of the Date of Termination or become vested pursuant
to the immediately preceding sentence may be exercised by the Executive within
one (1) year following the Date of Termination

                                       4
<PAGE>
and shall then terminate; provided, however, that in the event that the
Executive is entitled to receive a payment with respect to the Pro Rata Bonus,
all of such vested options may be exercised by the Executive within two (2)
years following the Date of Termination and shall then terminate.

                  (d)      By the Company for Cause. The Executive's employment
pursuant to this Agreement may be terminated by written notice to the Executive
("Notice of Termination") upon the occurrence of any of the following events
(each of which shall constitute "Cause" for termination): (i) the Executive
commits any act of gross negligence, fraud or willful misconduct causing
material harm to the Company, (ii) the conviction of the Executive of a felony
that would reasonably be expected by the Company Board to adversely affect the
Company or its reputation, (iii) the Executive intentionally obtains material
personal gain, profit or enrichment at the expense of the Company or from any
transaction in which the Executive has an interest which is adverse to the
interest of the Company, unless the Executive shall have obtained the prior
written consent of the Company Board, or (iv) any material breach of the
Executive of this Agreement, including, without limitation, a material breach of
Section 14 hereof, which breach remains uncorrected for a period of fifteen (15)
days after receipt by the Executive of written notice from the Company setting
forth the breach. In the event the Executive's employment is terminated pursuant
to this Section 10(d), the Executive shall be entitled to receive all Base
Salary and benefits to be paid or provided to the Executive under this Agreement
through the Date of Termination and no more.

                  (e)      By the Company Without Cause. The Executive's
employment pursuant to this Agreement may be terminated by the Company at any
time without Cause by delivery of a Notice of Termination to the Executive. In
the event that the Executive's employment is terminated pursuant to this Section
10(e), the Executive shall be entitled to receive (i) all Base Salary and
benefits to be paid or provided to the Executive under this Agreement through
the Date of Termination, (ii) an amount equal to two hundred percent (200%) of
the Executive's Base Salary at the then-current rate of Base Salary, (iii) to
the extent applicable, an amount equal to the Pro Rata Bonus, (iv) in the event
that the Executive is entitled to receive a payment with respect to the Pro Rata
Bonus, a severance amount equal to two hundred percent (200%) of the Pro Rata
Bonus and (v) a lump sum payment equal to the then present value of all major
medical, disability and life insurance coverage to be provided pursuant to
Section 9 above through the date two (2) years after the Date of Termination,
provided that under such circumstances the Executive shall make all COBRA
premium payments on his own behalf. The sum of the amounts described in clauses
(ii), (iv) and (v) above are hereafter referred to as the "Section 10(e)
Severance Amount." All of the amounts described in clauses (i) and (iii) shall
be paid to the Executive no later than ten (10) days following the Date of
Termination; provided that any amount payable under clause (iii) shall be paid
to the Executive no later than five (5) days following the determination of the
amount of such payment, if any. All of the Section 10(e) Severance Amount shall
be paid to the Executive no later than ten (10) days following the later of (x)
the Date of Termination and (y) the execution of an agreement by the Executive,
in form and substance reasonably satisfactory to the Company, providing for (I)
a full release by the Executive of the Company, its officers, directors,
representatives and affiliates from all liabilities, obligations or claims,
other than those obligations specifically provided in this Section 10(e) (and
the Company shall provide a mutual release of the Executive), (II) an
affirmation of the Executive's obligations pursuant to Section 14 hereof
and (III) an agreement by the Executive to immediately repay to the Company
one hundred percent (100%) of the Section 10(e) Severance Amount upon any breach
of such agreement; provided, however, that any Section 10(e) Severance Amount
payable pursuant to Section 10(e)(iv) shall be paid to the Executive no later
than five (5) days following the determination of the amount of such payments,
if any. Additionally, in the event that the Executive's employment is terminated
pursuant to this

                                       5
<PAGE>
Section 10(e), all of the Executive's options to purchase shares of capital
stock of the Company which are unvested as of the Date of Termination but
otherwise scheduled to vest on the first vesting date scheduled to occur
following the Date of Termination, shall immediately vest and become exercisable
on the Date of Termination and all remaining unvested options shall terminate as
of the Date of Termination. All of the Executive's options to purchase capital
stock of the Company that are vested as of the Date of Termination or become
vested pursuant to the immediately preceding sentence may be exercised by the
Executive within one (1) year following the Executive's Date of Termination and
shall then terminate; provided, however, that in the event that the Executive is
entitled to receive a payment with respect to the Pro Rata Bonus, all of such
vested options may be exercised by the Executive within two (2) years following
the Date of Termination and shall then terminate.

                  (f)      By the Executive for Good Reason. The Executive's
employment pursuant to this Agreement may be terminated by the Executive by
written notice of his resignation ("Notice of Resignation") delivered within
twelve (12) months after the occurrence of any of the following events (each of
which shall constitute "Good Reason" for resignation): (i) any Change of Control
(as defined below) shall occur, (ii) the removal of the Executive from or the
failure to elect or re-elect the Executive to the position of Chairman and Chief
Executive Officer of the Company, (iii) the removal of the Executive from or the
failure to elect or re-elect the Executive to the Board, (iv) any material
reduction by the Company of the Executive's duties or responsibilities or the
assignment to the Executive of duties materially inconsistent with such position
or (v) any breach by the Company of this Agreement (including the provisions of
Section 3), which breach remains uncorrected for a period of fifteen (15) days
after receipt by the Company of written notice from the Executive.
Notwithstanding the provisions of clause (i), (ii), (iii) or (iv) above, in the
event the Executive is elected as chief executive officer and a member of the
board of directors of any entity which acquires control of more than 50% of the
voting securities of the Company or, if such entity is a subsidiary of another
entity, the ultimate parent of such subsidiary, with responsibility for (1) no
fewer facilities than the Company controlled at the end of the fiscal year
ending immediately preceding such Change of Control and (2) operating revenues
equal to or greater than the Company's operating revenues during such fiscal
year, and is provided with a written employment agreement by the entity or, if
such entity is a subsidiary of another entity, the ultimate parent of such
subsidiary, on substantially the same terms as those contained in this
Agreement, the appointment to such position shall not constitute Good Reason for
purposes of this Agreement. In the event that the Executive resigns for Good
Reason pursuant to this Section 10(f), the Executive shall be entitled to
receive, (A) all Base Salary and benefits to be paid or provided to the
Executive under this Agreement through the Date of Termination, (B) an amount
equal to two hundred percent (200%) of the Executive's Base Salary at the
then-current rate of Base Salary, (C) to the extent applicable, an amount equal
to the Pro Rata Bonus, (D) in the event that the Executive is entitled to
receive a payment with respect to the Pro Rata Bonus, a severance amount equal
to two hundred percent (200%) of the Pro Rata Bonus and (E) a lump sum payment
equal to the then present value of all major medical, disability and life
insurance coverage to be provided pursuant to Section 9 above through the date
two (2) years after the Date of Termination, provided that under such
circumstances the Executive shall make all COBRA premium payments on his own
behalf. The sum of the amounts described in clauses B, D and E above are
hereafter referred to as the "Section 10(f) Severance Amount." All of the
amounts described in clauses (A) and (C) shall be paid to the Executive no later
than ten (10) days following the Date of Termination; provided that any amount
payable under clause (C) shall be paid to the Executive no later than five (5)
days following the determination of the amount of such payment, if any. All of
the Section 10(f) Severance Amount shall be paid to the Executive no later than
ten (10) days following the later of (x) the Date of Termination and (y) the
execution of an agreement by the

                                       6
<PAGE>
Executive, in form and substance reasonably satisfactory to the Company,
providing for (I) a full release by the Executive of the Company, its officers,
directors, representatives and affiliates from all liabilities, obligations or
claims, other than those obligations specifically provided in this Section 10(f)
(and the Company shall provide a mutual release of the Executive), (II) an
affirmation of the Executive's obligations pursuant to Section 14 hereof and
(III) an agreement by the Executive to immediately repay to the Company one
hundred percent (100%) of the Section 10(f) Severance Amount upon any breach of
such agreement; provided, however, that any Section 10(f) Severance Amount
payable under Section 10(f)(D) shall be paid to the Executive no later than five
(5) days following the determination of the amount of such payments, if any.
Additionally, in the event that the Executive's employment is terminated
pursuant to this Section 10(f), all of the Executive's options to purchase
shares of capital stock of the Company which are unvested as of the Date of
Termination but otherwise scheduled to vest on the first vesting date scheduled
to occur following the Date of Termination, shall immediately vest and become
exercisable on the Date of Termination and all remaining unvested options shall
terminate as of the Date of Termination. All of the Executive's options to
purchase capital stock of the Company that are vested as of the applicable Date
of Termination or become vested pursuant to the immediately preceding sentence
may be exercised by the Executive within one (1) year following the Executive's
Date of Termination and shall then terminate; provided, however, that in the
event that the Executive is entitled to receive a payment with respect to the
Pro Rata Bonus, all of such vested options may be exercised by the Executive
within two (2) years following the Date of Termination and shall then terminate.

                  For purposes of this Agreement, a "Change in Control" shall be
deemed to have occurred (A) at such time as any Person (as defined in Section
13(d)(3) or 14(d)(2) of the Securities and Exchange Act of 1934, as amended form
time to time (the "Exchange Act")) or "group" of Persons (as defined in Section
13(d) of the Exchange Act), other than any of the parties to that certain
Stockholders Agreement, dated October 7, 1999, among the Company, JLL
Healthcare, LLC, a Delaware limited liability company, and certain other
stockholders, as the same may be amended (the "Stockholders Agreement"),
directly or indirectly, acquires beneficially or of record, more than 50% of the
outstanding voting securities of the Company (by operation of law or otherwise)
or (B) upon a sale of all or substantially all of the assets of the Company.

                  (g)      By the Executive Without Good Reason. The Executive's
employment pursuant to this Agreement may be terminated by the Executive at any
time by delivery of a Notice of Resignation to the Company. In the event that
the Executive's employment is terminated pursuant to this Section 10(g), the
Executive shall receive all Base Salary and benefits to be paid or provided to
the Executive under this Agreement through the Date of Termination and no more.

                  (h)      Date of Termination. The Executive's Date of
Termination shall be (i) if the Executive's employment is terminated pursuant to
Section 10(b), the date of his death, (ii) if the Executive's employment is
terminated pursuant to Section 10(c), the last day of the six-month period
referred to in Section 10(c)(I) or the date of delivery of the last physician's
opinion referred to in Section 10(c)(ii), as the case may be, (iii) if the
Executive's employment is terminated pursuant to Section 10(d), the date on
which a Notice of Termination is given, (iv) if the Executive's employment is
terminated pursuant to Section 10(e), sixty (60) days after the date the Notice
of Termination is given; provided, however, that the Company may waive such
notice in the event of a termination pursuant to Section 10(e) in which event,
the Executive's Date of Termination shall be five (5) days after the Notice of
Termination, (v) if the Executive's employment is terminated pursuant to Section
10(f), five (5) days after the date the Notice of Resignation is given, (vi) if
the Executive's employment is terminated pursuant to Section 10(g), one hundred
twenty (120) days after the date

                                       7
<PAGE>
the Notice of Resignation is given or such shorter period as may be determined
by the Company and (vii) if the Company provides notice of its intent not to
extend the Term for any additional period as provided in Section 2(b), the
expiration of the Term.

                  (i)      Company's Failure to Extend Term. In the event the
Company provides notice of its intent not to extend the Term for any additional
period as provided in Section 2(b) and the Executive is not then in violation of
Section 14 hereof, the Executive shall be entitled to receive (i) all Base
Salary and benefits to be paid or provided to the Executive under this Agreement
through the Date of Termination; (ii) an amount equal to one hundred percent
(100%) of the Executive's Base Salary at the then-current rate of Base Salary;
(iii) to the extent applicable, an amount equal to the Pro Rata Bonus; (iv) in
the event that the Executive is entitled to receive a payment with respect to
the Pro Rata Bonus, an additional severance amount equal to one hundred percent
(100%) of the Pro Rata Bonus; and (v) a lump sum payment equal to the then
present value of all major medical, disability and life insurance coverage to be
provided pursuant to Section 9 above through the date one (1) year after the
Date of Termination, provided that under such circumstances the Executive shall
make all COBRA premium payments on his own behalf. The sum of the amounts
described in clauses (ii), (iv) and (v) above are hereafter referred to as the
"Section 10(i) Severance Amount." All of the amounts described in clauses (i)
and (iii) shall be paid to the Executive no later than ten (10) days following
the Date of Termination; provided that any amount payable under clause (iii)
shall be paid to the Executive no later than five (5) days following the
determination of the amount of such payment, if any. All of the Section 10(i)
Severance Amount shall be paid to the Executive no later than ten (10) days
following the later of (x) the Date of Termination and (y) the execution of an
agreement by the Executive, in form and substance reasonably satisfactory to the
Company, providing for (I) a full release by the Executive of the Company, its
officers, directors, representatives and affiliates from all liabilities,
obligations or claims, other than those obligations specifically provided in
this Section 10(i) (and the Company shall provide a mutual release of the
Executive), (II) an affirmation of the Executive's obligations pursuant to
Section 14 hereof and (III) an agreement by the Executive to immediately repay
to the Company one hundred percent (100%) of the Section 10(i) Severance Amount
upon any breach of such agreement; provided, however, that any Section 10(i)
Severance Amount payable under Section 10(i)(iv) shall be paid to the Executive
no later than five (5) days following the determination of the amount of such
payments, if any. Additionally, in the event that the Executive's employment is
terminated upon expiration of the Term, all of the Executive's options to
purchase shares of capital stock of the Company which are unvested as of the
expiration of the Term but otherwise scheduled to vest on the first vesting date
scheduled to occur following the expiration of the Term, shall immediately vest
and become exercisable upon the expiration of the Term and all remaining
unvested options shall terminate as of such date. All of Executive's options to
purchase capital stock of the Company that are vested as of the expiration of
the Term or become vested pursuant to the immediately preceding sentence may be
exercised by the Executive at any time within one (1) year following the
expiration of the Term and shall then terminate; provided, however, that in the
event the Executive is entitled to receive a payment with respect to the Pro
Rata Bonus, all of such vested options may be exercised by the Executive within
two (2) years following the Date of Termination and shall then terminate.

                  (j)      Option Term - Change of Control. Notwithstanding any
provision contained herein to the contrary, (i) all options to purchase shares
of capital stock of the Company held by Executive (A) at the time of a Change of
Control which occurs prior to the Date of Termination or (B) on the Date of
Termination if a Change of Control occurs after the Date of Termination and such
termination was in anticipation of a Change of Control (in which case any such
options which otherwise would have terminated as of the Date of Termination will
be deemed not to have

                                       8
<PAGE>
terminated as of the Date of Termination), shall immediately vest and become
exercisable upon the occurrence of such Change of Control and (ii) all options
held by Executive (A) at the time of a Change in Control which occurs prior to
the Date of Termination or (B) on the Date of Termination if a Change of Control
occurs after the Date of Termination and such termination was in anticipation of
a Change of Control (in which case any such options which otherwise would have
terminated as of the Date of Termination will be deemed not to have terminated
as of the Date of Termination), shall be exercisable at any time or from time to
time before the expiration of the original stated term of the option. For
purposes of this Agreement, Executive's termination shall be deemed in
anticipation of a Change of Control only if (1) any party to the Change of
Control transaction is a party, or an affiliate of a party, which, within the
three month period immediately prior to the Date of Termination, engaged in
substantive negotiations with the Company and/or publicly made an offer to the
Company or its shareholders with respect to a transaction which, if consummated,
would constitute a Change of Control transaction and (2) the Change of Control
occurred within six months following the Date of Termination. If, as a result of
a Change of Control occurring prior to any Date of Termination or within six
months immediately following any Date of Termination which was in anticipation
of a Change of Control, the Company is not the surviving entity after the
transaction, or survives only as a subsidiary or is otherwise controlled by
another entity, all options that are held by the Executive immediately prior to
the Change of Control shall, at the option of the Company, be (x) assumed by the
entity which is the survivor of the transaction (or at the option of the
Executive, the ultimate parent of the survivor), (y) converted into options to
purchase the common stock of the surviving entity (or at the option of the
Executive, the ultimate parent of the survivor) in the transaction to which
section 424(a) of the Code applies or (z) replaced by an arrangement that is
reasonably acceptable to the Executive.

         11.      Excise Tax.

                  (a)      Whether or not the Executive becomes entitled to any
payments hereunder, if any of the payments or benefits received or to be
received by the Executive in connection with a Change in Control or the
Executive's termination of employment pursuant to the terms of this Agreement or
the Stock Option Plan (all such payments and benefits, excluding the Gross-Up
Payment, being hereinafter referred to as the "Total Payments") will be subject
to excise tax imposed by section 4999 of the Code, or any interest or penalties
are incurred by Executive with respect to such excise tax (such excise tax
together with any such interest and penalties are hereinafter collectively
referred to as the "Excise Tax"), the Company shall pay to the Executive an
additional amount (the "Gross-Up Payment") such that the net amount retained by
the Executive, after deduction of any Excise Tax on the Total Payments and any
federal, state and local income and employment taxes and Excise Tax upon the
Gross-Up Payment, shall be equal to the Total Payments.

                  (b)      For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amount of such Excise Tax,
(I) all of the Total Payments shall be treated as "parachute payments" (within
the meaning of section 280G(b)(2) of the Code) unless, in the opinion of tax
counsel ("Tax Counsel") selected by the Company and reasonably acceptable to the
Executive, such payments or benefits (in whole or in part) do not constitute
parachute payments, including by reason of section 280G(b)(4)(A) of the Code,
and (ii) all "excess parachute payments" within the meaning of section
280G(b)(l) of the Code shall be treated as subject to the Excise Tax unless, in
the opinion of Tax Counsel, such excess parachute payments (in whole or in part)
represent reasonable compensation for services actually rendered (within the
meaning of section 280G(b)(4)(B) of the Code) in excess of the Base Amount
allocable to such reasonable compensation, or are otherwise not subject to the
Excise Tax. For purposes of determining the

                                       9
<PAGE>
amount of the Gross-Up Payment, the Executive shall be deemed to pay federal
income tax at the highest marginal rate of federal income taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation in the state and locality
of the Executive's residence on the Date of Termination (or if there is no Date
of Termination, then the date on which the Gross-Up Payment is calculated for
purposes of this Section 11), net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

                  (c)      In the event that the Excise Tax is finally
determined to be less than the amount taken into account hereunder in
calculating the Gross-Up Payment, the Executive shall repay to the Company,
within five (5) business days following the time that the amount of such
reduction in the Excise Tax is finally determined, the portion of the Gross-Up
Payment attributable to such reduction (plus that portion of the Gross-Up
Payment attributable to the Excise Tax and federal, state and local income and
employment taxes imposed on the Gross-Up Payment being repaid by the Executive),
to the extent that such repayment results in a reduction in the Excise Tax and a
dollar-for-dollar reduction in the Executive's taxable income and wages for
purposes of federal, state and local income and employment taxes, plus interest
on the amount of such repayment at 120% of the rate provided in section
1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined, in
accordance with the procedures set forth in Section 11(d) below, to exceed the
amount taken into account hereunder in calculating the Gross-Up Payment, in
accordance with the procedures set forth in Section 11(d) below. The Executive
and the Company shall each reasonably cooperate with the other in connection
with any administrative or judicial proceedings concerning the existence or
amount of liability for Excise Tax with respect to the Total Payments.

                  (d)      Executive shall notify the Company in writing of any
claims by the Internal Revenue Service that, if successful, would require the
payment by the Company of an additional Gross-Up Payment. Such notification
shall be given as soon as practicable but no later than thirty (30) calendar
days after Executive actually receives notice in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such claim
is requested to be paid; provided, however, that the failure of Executive to
notify the Company of such claim (or to provide any required information with
respect thereto) shall not affect any rights granted to the Executive under this
Section except to the extent that the Company is materially prejudiced in the
defense of such claim as a direct result of such failure. Executive shall not,
unless otherwise required by the Internal Revenue Service, pay such claim prior
to the expiration of the 30-day period following the date on which he gives such
notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies
Executive in writing prior to the expiration of such 30-day period that it
desires to contest such claim, the Executive shall:

                           (1) give the Company any information reasonably
                  requested by the Company relating to such claim;

                           (2) take such action in connection with contesting
                  such claim as the Company shall reasonably request in writing
                  from time to time, including, without limitation, accepting
                  legal representation with respect to such claim by an attorney
                  selected by the Company and reasonably acceptable to
                  Executive;

                           (3) cooperate with the Company in good faith in order
                  effectively to contest such claim; and

                                       10
<PAGE>
                           (4) if the Company elects not to assume and control
                  the defense of such claim, permit the Company to participate
                  in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any additional Excise Tax or income tax (including interest
and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses, without, however, any duplication of the
previously paid Gross-Up Payments. Without limiting the foregoing provisions of
this paragraph, the Company shall have the right, at its sole option, to assume
the defense of and control all proceedings in connection with such contest, in
which case it may pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may either direct the Executive to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free basis
and shall indemnify and hold the Executive harmless, on an after-tax basis, from
any additional Excise Tax or income tax (including interest or penalties with
respect thereto) imposed with respect to such advance or with respect to any
imputed income with respect to such advance, without, however, any duplication
of the previously paid Gross-Up Payments; and provided, further, that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the
Company's right to assume the defense of and control the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder, and Executive shall be entitled to settle or contest, as the case may
be, any other issue raised by the Internal Revenue Service or any other taxing
authority.

                  (e)      The payments provided in this Section 11 shall be
made not later than the fifth (5th) day following the Date of Termination (or if
there is no Date of Termination, then the date on which the Gross-up Payment is
calculated for purposes of this Section 11); provided, however, that if the
amounts of such payments cannot be finally determined on or before such day, the
Company shall pay to the Executive on such day an estimate, in accordance with
this Section 11, of the minimum amount of such payments to which the Executive
is clearly entitled and shall pay the remainder of such payments (together with
interest on the unpaid remainder (or on all such payments to the extent the
Company fails to make such payments when due) at 120% of the rate provided in
section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be
determined but in no event later than the thirtieth (30th) day after the Date of
Termination. In the event that the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such excess shall constitute a
loan by the Company to the Executive, payable on the fifth (5th) business day
after demand by the Company (together with interest at 120% of the rate provided
in section 1274(b)(2)(B) of the Code).

                  (f)      The Company agrees promptly to submit this Agreement
to the stockholders of the Company for their approval in accordance with Section
280G Prop. Reg. Section 1.280G-1 Q/A7, and if such approval is not obtained by
February 28, 2001, this Agreement shall become null and void as of such date.

         12.      Representations.

                                       11
<PAGE>
                  (a)      The Company represents and warrants that this
Agreement has been authorized by all necessary corporate action of the Company
and is a valid and binding agreement of the Company enforceable against both in
accordance with its terms.

                  (b)      The Executive represents and warrants that he is not
a party to any agreement or instrument which would prevent him from entering
into or performing his duties in any way under this Agreement.

         13.      Assignment; Binding Agreement. This Agreement is a personal
contract and the rights and interests of the Executive hereunder may not be
sold, transferred, assigned, pledged, encumbered, or hypothecated by him, except
as otherwise expressly permitted by the provisions of this Agreement. This
Agreement shall inure to the benefit of and be enforceable by the Executive and
his personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Executive should die while
any amount would still be payable to him hereunder had the Executive continued
to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to his devisee, legatee or other
designee or, if there is no such designee, to his estate.

         14.      Confidentiality; Non-Competition; Ownership of Works.

                  (a)      The Executive acknowledges that: (i) the Business is
intensely competitive and that the Executive's employment by the Company will
require that the Executive have access to and knowledge of confidential
information of the Company relating to the Business, including, but not limited
to, the identity of the Company's employees, physicians, payors or suppliers,
the kinds of services provided by the Company, the manner in which such services
are performed or offered to be performed, the service needs of actual or
prospective patients, physicians or payors, pricing information and other
contractual terms, information concerning the creation, acquisition or
disposition of products and services, creative ideas and concepts, including
clinical and financial systems, compliance programs and physician relation and
retention programs, computer software applications and other programs, research
data, personnel information and other trade secrets, in each case other than as
and to the extent such information is generally known or publicly available
through no violation of this Section 14 by the Executive or such information is
readily discernible (the "Confidential Information"); (ii) the disclosure of any
such Confidential Information may place the Company at a competitive
disadvantage and may do damage, monetary or otherwise, to the Company's
business; and (iii) the engaging by the Executive in any of the activities
prohibited by this Section 14 may constitute improper appropriation and/or use
of such Confidential Information. The Executive expressly acknowledges the trade
secret status of the Confidential Information and that the Confidential
Information constitutes a protectable business interest in the Company.
Accordingly, the Company and the Executive agree as follows:

                  (b)      For purposes of this Section 14, the Company shall be
construed to include the Company and its parents and subsidiaries engaged in the
Business, including any divisions managed by the Executive.

                  (c)      During the Executive's employment with the Company,
and at all times after the termination of the Executive's employment by
expiration of the Term or otherwise, the Executive shall not, directly or
indirectly, whether individually, as a director, stockholder, owner, partner,
employee, principal or agent of any business, or in any other capacity, make
known, disclose, furnish, make available or utilize any of the Confidential
Information, other than in the proper

                                       12
<PAGE>
performance of the duties contemplated herein, or as expressly permitted herein,
or as required by a court of competent jurisdiction or other administrative or
legislative body, the Executive shall promptly notify the Company so that the
Company may seek a protective order or other appropriate remedy. The Executive
agrees to return all documents or other materials containing Confidential
Information, including all photocopies, extracts and summaries thereof, and any
such information stored electronically on tapes, computer disks or in any other
manner to the Company at any time upon request by the Company and immediately
upon the termination of his employment for any reason.

                  (d)      For a period of two (2) years following the
Executive's Date of Termination (or one (1) year following the expiration of the
Term in the case of the Company's delivery of notice of its intent not to extend
the Term for any additional period as provided in Section 2(b)), whether upon
expiration of the Term or otherwise, the Executive shall not engage in
Competition, as defined below, with the Company or its subsidiaries within
twenty-five (25) miles of the location of any hospital managed by the Company
(or other facility managed by the Company from which in excess of five percent
(5%) of the Company's annual revenues are derived) at the time of, or within six
(6) months prior to, the Executive's Date of Termination or the expiration of
the Term, as applicable (each, an "Affected Facility"), or in which, during the
three (3) month period immediately prior to the Executive's Date of Termination
or the expiration of the Term (as applicable), the Company had made substantial
plans with the intention of establishing operations in such locality or region.
For purposes of this Agreement, "Competition" by the Executive shall mean the
Executive's engaging in any activities relating to, or otherwise directly or
indirectly being employed by or acting as a consultant or lender to, or being a
director, officer, employee, principal, agent, stockholder, member, owner or
partner of, or permitting his name to be used in connection with the activities
of any entity engaged in significant activities relating to, the Business.
Notwithstanding the foregoing, it shall not be a violation of this paragraph for
the Executive to (ii) be a consultant to, or a director, officer, employee, or
agent of, any entity engaged in the Business which has hospitals or other
facilities within twenty-five (25) miles of any Affected Facility, so long as
the Executive does not provide any services or advice to, or have any management
supervision of, or responsibility for, any hospital or other facility located
within twenty-five (25) miles of any Affected Facility; or (ii) become the
registered or beneficial owner of up to five percent (5%) of any class of the
capital stock of any one or more competing corporations registered under the
Securities Exchange Act of 1934, as amended, provided that the Executive does
not actively participate in the business of such corporation until such time as
this covenant expires. In the event that the Executive breaches the restrictions
set forth in Section 14(d) following a termination pursuant to Section 10(e),
10(f) or 10 (i), the Executive shall pay the Company "Liquidated Damages" (as
hereinafter defined) within ten (10) days following any such breach. If
Executive's employment is terminated pursuant to Section 10(e), 10(f) or 10(i)
and the Executive has repaid the full amount of the Liquidated Damages as
provided pursuant to the immediately preceding sentence, the Company shall not
be entitled to any remedy, including, without limitation, additional damages or
injunctive relief, upon Executive's breach of Section 14(d). "Liquidated
Damages" shall mean the Section 10(e) Severance Amount, Section 10(f) Severance
Amount or Section 10(i) Severance Amount received by the Executive, as the case
may be.

                  (e)      For a period of two (2) years following the
Executive's Date of Termination (or one (1) year following the expiration of the
Term in the case of the Company's delivery of notice of its intent not to extend
the Term for any additional period as provided in Section 2(b)), whether upon
expiration of the Term or otherwise, the Executive agrees that he will not,
directly or indirectly, for his benefit or for the benefit of any other person,
firm or entity, do any of the following:

                                       13
<PAGE>
                           (i)      solicit from any physician or physician
         group doing business with the Company as of the Executive's
         termination, business of the same or of a similar nature to the
         business of the Company with such physician or physician group;

                           (ii)     solicit from any known potential physician
         group business of the same or of a similar nature to that which has
         been the subject of a known written or oral bid, offer or proposal by
         the Company, or of substantial preparation with a view to making such a
         bid, proposal or offer, within six (6) months prior to the Executive's
         termination; or

                           (iii)    recruit or solicit the employment or
         services of any person who was employed by the Company upon termination
         of the Executive's employment and is employed by the Company at the
         time of such recruitment or solicitation.

                  (f)      The Executive will make full and prompt disclosure to
the Company of all inventions, improvements, formulas, data, programs,
processes, ideas, concepts, discoveries, methods, developments, software, and
works of authorship, whether or not copyrightable, trademarkable or patentable,
which relate to the actual or anticipated business, activities or research of
the Company and either (I) are created, made, conceived or reduced to practice
by the Executive, either alone, under his direction or jointly with others
during the period of his employment with the Company, (ii) result from or are
suggested by work performed by the executive for the Company or (iii) result, to
any extent, from use of the Company's premises or property (all of which are
collectively referred to in this Agreement as "Works"). All Works shall be the
sole property of the Company, and, to the extent that the Company is not already
considered the owner thereof as a matter of law, the Executive hereby assigns to
the Company, without further compensation, all his right, title and interest in
and to such Works and any and all related intellectual property rights
(including, but not limited to, patents, patent applications, copyrights,
copyright applications, and trademarks) in the United States and elsewhere.

                  (g)      The Executive acknowledges that the services to be
rendered by him to the Company are of a special and unique character, which
gives this Agreement a peculiar value to the Company, the loss of which may not
be reasonably or adequately compensated for by damages in an action at law, and
that a breach or threatened breach by him of any of the provisions contained in
this Section 14 may cause the Company irreparable injury. The Executive
therefore agrees that the Company may be entitled, in addition to any other
right or remedy, to a temporary, preliminary and permanent injunction, without
the necessity of proving the inadequacy of monetary damages or the posting of
any bond or security, enjoining or restraining the Executive from any such
violation or threatened violations.

                  (h)      If any one or more of the provisions contained in
this Agreement shall be held to be excessively broad as to duration, activity or
subject, such provisions shall be construed by limiting and reducing them so as
to be enforceable to the fullest extent permitted by law.

         15.      Entire Agreement. This Agreement contains all the
understandings between the parties hereto pertaining to the matters referred to
herein, and supersedes any other undertakings and agreements, whether oral or in
writing, previously entered into by them with respect thereto. The Executive
represents that, in executing this Agreement, he does not rely and has not
relied upon any representation or statement not set forth herein made by the
Company with regard to the subject matter or effect of this Agreement or
otherwise.

                                       14
<PAGE>
         16.      Amendment or Modification Waiver. No provision of this
Agreement may be amended or waived, unless such amendment or waiver is agreed to
in writing, signed by the Executive and by a duly authorized officer of the
Company. No waiver by any party hereto of any breach by another party hereto of
any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of a similar or dissimilar condition or provision at
the same time, any prior time or any subsequent time.

         17.      Expenses. Each party shall bear its own expenses in connection
with the negotiation, execution, delivery and performance of this Agreement and
the resolution of any disputes hereunder; provided, however, that the Company
shall pay the Executive's reasonable legal costs and expenses incurred in
connection with the negotiation, execution and delivery of this Agreement.

         18.      Notices. Any notice to be given hereunder shall be in writing
and shall be deemed given when delivered personally, sent by courier or
facsimile or registered or certified mail, postage prepaid, return receipt
requested, addressed to the party concerned at the address indicated below or to
such other address as such party may subsequently give notice hereunder in
writing:

                  To the Executive at:

                           4885 Harpeth-Peytonsville Road
                           Tompson Station, TN  37179

                  With copies to:

                           Waller Lansden Dortch & Davis
                           Nashville City Center
                           P.O. Box 198966
                           Nashville, TN  37219-8966
                           Attention:  Scott Rayson, Esquire

                  To the Company at:

                           IASIS Healthcare Corporation
                           113 Seaboard Lane
                           Suite A-200
                           Franklin, TN  37067
                           Attention:  General Counsel

                  With copies to:

                           Joseph Littlejohn & Levy
                           450 Lexington Avenue
                           New York, New York 10022
                           Attention:  Jeffrey C. Lightcap

                                    and

                           Skadden, Arps, Slate, Meagher & Flom, LLP
                           One Rodney Square

                                       15
<PAGE>
                           PO Box 636
                           Wilmington, Delaware 19899
                           Facsimile: (302) 651-3001
                           Attention:  Robert B. Pincus, Esquire

                  Any notice delivered personally or by courier under this
Section 16 shall be deemed given on the date delivered and any notice sent by
facsimile or registered or certified mail, postage prepaid, return receipt
requested, shall be deemed given on the date transmitted by facsimile or mailed.

         19.      Severability. If any provision of this Agreement or the
application of any such provision to any party or circumstances shall be
determined by any court of competent jurisdiction to be invalid and
unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such person or circumstances other than those to which it
is so determined to be invalid and unenforceable, shall not be affected thereby,
and each provision hereof shall be validated and shall be enforced to the
fullest extent permitted by law.

         20.      Survivorship. The respective rights and obligations of the
parties hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations.

         21.      Governing Law; Venue. This Agreement will be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to the principles of conflicts of law thereof.

         22.      Headings. All descriptive headings of sections and paragraphs
in this Agreement are intended solely for convenience, and no provision of this
Agreement is to be construed by reference to the heading of any section or
paragraph.

         23.      Withholding. All payments to the Executive under this
Agreement shall be reduced by all applicable withholding required by federal,
state or local law.

         24.      Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                       16
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Employment
Agreement on February 7, 2001 to be effective as of the Effective Date.

                                          IASIS HEALTHCARE CORPORATION

                                          By: /s/ John K. Crawford
                                              ---------------------------------
                                          Name: John K. Crawford
                                          Title: Executive Vice President & CFO

                                                   /s/ David R. White
                                          --------------------------------------
                                          David R. White

                                       17
<PAGE>

                                                                       EXHIBIT A

                              Executive Bonus Plan

<PAGE>
IASIS FISCAL 2001 BONUS PLAN
DAVID

<TABLE>
<CAPTION>
                                                  CRITERIA RESULT    BONUS CREDIT
                                                  ---------------    ------------
<S>                                               <C>                <C>
EBITDA                                              135,035,000          50.000% At Budget
                                                    -----------
Meet 92.5% of Budget                                124,907,375           0.000% Minimum
Meet 115% of Budget                                 155,290,250         107.143% Maximum

                                                                            10,127,625  Spread Dollars from 92.5% to 100% of Budget
                                                                            50.000%     Spread bonus credit available below budget
                                                                            20,255,250  Spread Dollars from 100% to 115% of Budget
                                                                            57.143%     Spread bonus credit available above budget

EBITDA Margin                                       Below 14.90%          0.000% Minimum
Meet Budget                                           14.900%            25.000% at Budget
Exceed Step 1                                         15.400%            34.524%
Exceed Step 2                                         15.900%            44.048%
Exceed Step 3                                         16.400%            53.571% Maximum
                                                                                 9.524% Spread credit between steps above budget

Operating Cash Flow
Below Budget                                       Below $62.3MM          0.000% Minimum
Meet Budget                                          62,272,000          12.500% At Budget
Meet 115% of Budget                                  71,612,800          26.786% Maximum
                                                                           14.286% Spread available between 100% and 115% of budget

Personal Objectives
Fail                                                                      0.000% Fail
Pass                                                                     12.500% Pass

TOTAL BONUS OPPORTUNITY
Meet Budget and Pass                                                    100.000%
Maximum Each Component                                                  200.000%
</TABLE>

<PAGE>

                                    EXHIBIT B
                                STOCK OPTION PLAN
<PAGE>

                                    EXHIBIT C
                             Stock Option Agreement
<PAGE>

                          IASIS HEALTHCARE CORPORATION
                             2000 STOCK OPTION PLAN

                        INCENTIVE STOCK OPTION AGREEMENT

         INCENTIVE STOCK OPTION AGREEMENT, entered into as of December 1, 2000,
pursuant to the IASIS Healthcare Corporation 2000 Stock Option Plan (the
"Plan"), between IASIS Healthcare Corporation, a Delaware corporation (the
"Company"), and Optionee listed on Exhibit A attached hereto whose signature
appears on page 7 hereof (the "Optionee"), an employee of the Company or a
Subsidiary. Capitalized terms used but not defined herein shall have the meaning
ascribed to such terms in the Plan.

         WHEREAS, the Company desires, by affording the Optionee an opportunity
to purchase shares of its Stock as hereinafter provided and subject to the terms
and conditions hereof, to carry out the purpose of the Plan;

         NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth and for other good and valuable consideration, the parties hereto have
agreed and do hereby agree as follows:

         1.       Number of Shares; Tranches; Exercise Price. The Option (as
defined below) is granted under the Plan and, except as provided in Section 16,
is intended to qualify as an "incentive stock option," as that term is used in
Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").

                  (a)      The Company hereby grants to the Optionee an option
(the "Series I Option") to purchase an aggregate number of shares of Stock as
set forth on Exhibit A hereto, subject to adjustment as provided in Section 2
hereof, on the terms and conditions herein set forth. The Series I Option
consists of three (3) portions, the number of shares of Stock included in each
such portion and the exercise price relating to each such portion are set forth
on Exhibit A hereto (each such portion, a "Tranche"; and the Tranches designated
"A", "B" or "C").

                  (b)      The Company hereby grants to the Optionee an Option
(the "Series II Option" and, together with the Series I Option, the "Option") to
purchase an aggregate number of shares of Stock as set forth on Exhibit A
hereto, subject to adjustment as provided in Section 2 hereof, on the terms and
conditions herein set forth. The Series II Option consists of three (3)
Tranches, the number of shares of Stock included in each such Tranche and the
exercise price relating to each such Tranche are set forth on Exhibit A hereto.

         2.       Certain Adjustments. In the event that any dividend or other
distribution (whether in the form of cash, Stock, or other property), Stock
split, reverse split, reorganization, merger, consolidation, spin-off, or other
similar corporate transaction or event occurs after the date hereof, which the
Committee, in its reasonable discretion, determines affects the Stock such that
an adjustment is appropriate in order to prevent dilution or enlargement of the
rights of Optionees under the Plan, then the Committee shall make such equitable
changes or adjustments as it deems necessary or appropriate to (a) the number
and kind of shares of capital stock which

                                      -1-
<PAGE>

may be thereafter issued in respect of this Option and (b) the exercise price
relating to this Option.

         3.       Term and Exercisability of Option.

                  (a)      Unless the Option is previously cancelled pursuant to
this Agreement, the term of the Option and of this Agreement shall commence on
the date hereof (the "Date of Grant') and terminate on the tenth anniversary of
the Date of Grant. Upon the termination of the Option, all rights of the
Optionee hereunder shall cease.

                  (b)      Series I Option. Notwithstanding any provision of
Exhibit A hereto to the contrary, twenty percent (20%) of the shares of Stock
covered by each of Tranches A through C shall vest and become issuable upon
exercise of the Series I Option if the Optionee is, and has continuously
remained, an employee of the Company or any Subsidiary as of September 30, 2001
and twenty percent (20%) of the shares of Stock covered by each of Tranches A
through C shall vest and become issuable upon exercise of the Series I Option,
if the Optionee is, and has continuously remained, an employee of the Company or
any Subsidiary on each succeeding September 30 through September 30, 2005.
Notwithstanding the foregoing, any Options listed on Exhibit A hereto as Special
Series I Options shall vest immediately on the date hereof.

                  (c)      Series II Option. Notwithstanding any provision of
Exhibit A hereto to the contrary, the entire Series II Option shall vest and
become exercisable in full if the Optionee is, and has continuously remained, an
employee of the Company or any Subsidiary on date that is seven years from
grant; provided, however, that notwithstanding the foregoing, the Series II
Option or any portion thereof shall vest and become exercisable prior to such
date, if the conditions set forth in each of clauses (i) and (ii) below are
satisfied:

                           (i)      Time Condition. The Optionee shall be deemed
         to have satisfied the condition set forth in this clause (i) with
         respect to twenty percent (20%) of the shares of Stock covered by each
         of Tranches A through C if the Optionee is, and has continuously
         remained an employee or of the Company or any Subsidiary as of
         September 30, 2001, and with respect to an additional 20% of the shares
         of Stock covered by each of Tranches A through C on each succeeding
         September 30 through September 30, 2005, if the Optionee has
         continuously remained an employee of the Company on such date and

                           (ii)     Triggering Event Condition. The Optionee
         shall be deemed to have satisfied the condition set forth in this
         clause (ii) with respect to the entire Series II Option upon the
         occurrence of a Triggering Event.

Notwithstanding the foregoing, any Options listed on Exhibit A hereto as Special
Series II Options shall vest immediately upon the occurrence of a Triggering
Event.

                  (d)      Subject to Section 5 hereof, the right of the
Optionee to purchase shares with respect to which this Option has become
exercisable as herein provided may be exercised in whole or in part at any time
or from time to time, prior to the tenth anniversary of the Date of Grant.

                                      -2-
<PAGE>

         4.       Payment. Upon the exercise of all or any portion of the
Option, the exercise price of the shares being purchased (the "Exercise Price")
shall be paid in full either (a) in cash or its equivalent, (b) by tendering
previously acquired shares of Stock, which have been held by the Optionee for at
least six months prior to the exercise, having an aggregate Fair Market Value at
the time of exercise equal to the total Exercise Price, or (c) with the approval
of the Committee, following an Initial Public Offering, cashless exercise under
the Federal Reserve Board's Regulation T or under any other method approved by
the Committee, or (d) by a combination of (a), (b), and (c).

         5.       Termination of Employment.

                  (a)      Except as provided in this Section 5, the Option may
not be exercised after the Optionee has ceased to be employed by the Company or
any Subsidiary.

                  (b)      If the Optionee's employment with the Company or a
Subsidiary is terminated by the Company or such Subsidiary for Cause, the Option
shall be cancelled as of the date of such termination and may not be exercised
by the Optionee.

                  (c)      If the Optionee's employment with the Company or a
Subsidiary is terminated for any reason other than for Cause, the Optionee (or
his or her Beneficiary or representative) shall have the right to exercise the
Option, to the extent exercisable as of the date of such termination of
employment, for a period of three months following the date of such termination,
or, in the case of termination as a result of death or Disability, for a period
of one hundred and eighty days following the date of such termination.

                  (d)      Notwithstanding anything to the contrary in this
Section 5, the Option shall not be exercisable later than the tenth anniversary
of the Date of Grant.

                  (e)      The Committee may, in its sole and absolute
discretion, in connection with the termination of the Optionee's employment,
accelerate the vesting of all or any portion of the Option or extend the
exercisability of the Option, subject to subsection (d) of this Section 5.

                  (f)      For purposes of this Section 5, the transfer of
employment of an Optionee between the Company and any one of its Subsidiaries
(or between Subsidiaries) shall not be deemed a termination of employment.

         6.       Change in Control. In the event of a Change in Control (as
defined below) all then unexercisable Options shall become immediately
exercisable in full.

         For purposes of this Agreement, a "Change in Control" shall be deemed
to have occurred (A) at such time as any Person or "group" of Persons (within
the meaning of Section 13(d) of the Exchange Act), other than Joseph Littlejohn
& Levy Fund III, L.P., or any of its affiliates, shall acquire beneficially or
of record more than 50% of the then outstanding voting securities of the Company
or (B) upon a sale of all or substantially all of the assets of the Company.

                                      -3-
<PAGE>

         7.       Rights of Optionee.

                  (a)      The Optionee shall have none of the rights of a
stockholder with respect to the shares covered by the Option until the shares
are issued or transferred to such Optionee upon exercise of the Option.

                  (b)      The Option shall not interfere with or limit in any
way the right of the Company to terminate any Optionee's employment at any time,
nor confer upon any Optionee any right to continue in the employ of the Company
or any Subsidiary.

         8.       Nontransferability of Option. The Option shall not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution and shall be exercisable
during the Optionee's lifetime only by the Optionee or his or her legal
representative and after death of an Optionee, by his or her Beneficiaries.

         9.       Notification.

                  (a)      The Option shall be exercised by written notification
of exercise substantially in the form of Exhibit B hereto and delivered to the
Secretary of the Company in accordance with subsection (b) of this Section 9.
Such notification shall specify the number of shares of Stock to be purchased
and the manner in which payment is to be made.

                  (b)      Any notification required or permitted hereunder
shall be in writing and shall be deemed to have been given when personally
delivered, or when sent if sent via facsimile (with receipt confirmed) or on the
first business day after sent by reputable overnight courier or on the third
business day after sent registered or certified first-class mail (with receipt
confirmed). Such notice shall be addressed to the Company, to the attention of
the Secretary, at IASIS Healthcare Corporation, 113 Seaboard Lane, Suite A-200,
Franklin, Tennessee 37067, or to the Optionee at the address set forth below, as
the case may be, and deposited, postage prepaid, in the United States mail;
provided, however, that a notification of exercise pursuant to subsection (a) of
this Section 9 shall be effective only upon receipt by the Secretary of the
Company of such notification and all necessary documentation, including full
payment for the Shares, or, if applicable, instructions with respect to cashless
exercise pursuant to Section 4(c) hereof Either party may, by notification to
the other given in the manner aforesaid, change the address for future notices.

         10.      Tax Withholding. The Company shall have the power and the
right to deduct or withhold, or require Optionee to remit to the Company, an
amount sufficient to satisfy any Federal, state, and local taxes (including the
Optionee's FICA obligation) required by law to be withheld as a result of any
taxable event arising in connection with the Option, in accordance with the
terms of the Plan.

         11.      Conditions to Issuance Restrictions on Transferability.

                  (a)      The sale and delivery of any shares hereunder are
subject to approval of any governmental agency that may, in the opinion of
counsel, be required in connection with the authorization, issuance or sale of
Stock. No shares of Stock shall be issued under the Option prior to compliance
with such requirements and with any listing agreement then in effect.

                                      -4-
<PAGE>

                  (b)      The Committee may impose such restrictions on any
shares of Stock acquired pursuant to the exercise of the Option as is required
by applicable Federal securities laws, under the requirements of any stock
exchange or market upon which such shares are then listed and/or traded, and
under any blue sky or state securities laws applicable to such shares.

                  (c)      As a condition to the exercise of the Option granted
hereby, the Optionee shall agree to be bound by all of the terms and conditions
of the Stockholders' Agreement dated October 8, 1999, among the Company, JLL
Healthcare, LLC, a Delaware limited liability company, and certain other
stockholders, as the same may be amended (the "Stockholders' Agreement"),
including the restrictions on transferability contained therein. A copy of the
Stockholders Agreement may be obtained from the Secretary of the Company at the
address set forth in Section 9 hereof

         12.      Cancellation and Reissuance. The Committee shall have the
authority to provide for the cancellation of the Option and the reissuance of a
replacement Option upon such terms as the Committee, in its sole discretion,
deems appropriate, provided that such terms shall not adversely affect the
Optionee in any material way.

         13.      Incorporation of Plan Governing Law Interpretation.

                  (a)      The Plan is hereby incorporated by reference and made
a part hereof, and the Option and this Agreement are subject to all terms and
conditions of the Plan. To the extent that any provision in this Agreement is
inconsistent with the Plan, the provisions of the Plan shall control. To the
extent that any provision of Exhibit A hereto is inconsistent with this
Agreement, the provisions of this Agreement shall control.

                  (b)      This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

                  (c)      The Committee shall have final authority to interpret
and construe the Plan and this Agreement and to make any and all determinations
under them, and its determination and decisions shall be final, conclusive and
binding upon the Optionee and his legal representative in respect of any
questions arising under the Plan or this Agreement.

         14.      Miscellaneous.

                  (a)      This Agreement shall bind and inure to the benefit of
the Company, its successors and assigns, and the Optionee and his personal
representatives and assigns.

                  (b)      The failure of the Company to enforce at any time any
provision of this Agreement shall in no way be construed to be a waiver of such
provision or of any other provision hereof.

         15.      Amendment. This Agreement may be amended or modified at any
time by an instrument in writing signed by the parties hereto.

         16.      Excessive Shares. In the event that the number of shares
subject to this Option exceeds any maximum established under the Code for
Incentive Stock Options that may be

                                      -5-
<PAGE>

granted to Optionee, or in the event that this Option becomes first exercisable
in any calendar year to obtain Stock having a fair market value (determined at
the time of grant) in excess of $100,000, this Option shall be treated as a
Non-Qualified Stock Option to the extent of such excess. If the exercise of the
Option is accelerated by reason of a Change in Control, any portion of such
Option that is not exercisable as an Incentive Stock Option by reason of the
$100,000 limitation contained in Section 422(d) of the Code shall be treated as
a Non-Qualified Stock Option.

                [This rest of this page intentionally left blank]

                                      -6-
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Agreement to be duly
executed by its officer thereunder duly authorized and the Optionee has hereunto
set his hand, all as of the day and year set forth above.

                                         IASIS HEALTHCARE CORPORATION

                                         By: /s/ Wayne Gower
                                             ----------------------------------
                                             C. Wayne Gower
                                             President & Chief Operating Officer

ACCEPTED:

Signature:    /s/ David R. White
              ------------------
Printed Name: David R. White
Address:      4885 Harpeth Peytonsville Road
              Thompson Station, TN 37179

Date:         December 20, 2000
              -----------------

                                      -7-
<PAGE>

                                    Exhibit A

                             Grant of Stock Options

                                   [Attached]
<PAGE>

                                    Exhibit A

                          Iasis Healthcare Corporation
                  Grant of Stock Options as of December 1, 2000

Name:             David White

Expiration date:  November 30, 2010

<TABLE>
<CAPTION>

The following summarizes the two series:                               EXERCISE           #OF
                                                                         PRICE           SHARES
<S>      <C>                       <C>             <C>                 <C>           <C>           <C>
         Series I

                  Tranche A                                            100           14.64%         8,964.1
                  Tranche B                                            260           17.20%        10,533.8
                  Tranche C                                            420           13.51%         8,276.6

         Series II

                  Tranche A                                            100           17.63%        10,799.8
                  Tranche B                                            260           20.73%        12,696.7
                  Tranche C                                            420           16.29%         9,976.0

        Special Series I-vested immediately                            100            0.00%
        Special Series II-vested immediately
               After Triggering event                                  100            0.00%
                                                                                    -----------------------
                                                                                    100.00%        61,247.0
                                                                                    =======================

Combined Series
         Tranche A                100              19,763.90
         Tranche B                260              23,230.50
         Tranche C                420              18,252.60
                                                   ---------
                                                   61,247.00

Year five potential per share value            350               450               500
         Tranche A                             4,940,975         6,917,365         7,905,560
         Tranche B                             2,090,745         4,413,795         5,575,320
         Tranche C                                                 547,578         1,460,208
                                               ---------------------------------------------
            Total pre-tax value-options        7,031,720        11,878,738        14,941,088
                                                      --                --                --
                                               ---------------------------------------------
            Pre-tax equity value               7,031,720        11,878,738        14,941,088
            combined                           =============================================
</TABLE>

<PAGE>

                                    EXHIBIT B

                        WRITTEN NOTIFICATION OF EXERCISE

             [SEPARATE FORM IS NECESSARY FOR EACH TRANCHE EXERCISED]

IASIS Healthcare Corporation
113 Seaboard Lane
Suite A-200
Franklin, TN 37067
Attention:  Secretary

Gentlemen:

         I hereby elect to exercise the stock option granted to me on _________,
2000, under the IASIS Healthcare Corporation 2000 Stock Option Plan, with
respect to _____ shares of Stock ("Shares") at the option price of $____ per
share for a total purchase price of $___________

         I wish to make payment of the option price for the Shares as indicated
below (check one or more boxes):

         ____ Cash; my check in the amount of $__________ is enclosed herewith.

         ____ Previously Acquired Shares that I have held for at least six
months; ______ such Shares with a total Fair Market Value of $__________ are
enclosed herewith.

         _____ "Cashless exercise"; I understand that of the _________ Shares I
am purchasing by this method, the net number that 1 will receive is _________.
Note: This method of exercise may not be permitted by the Compensation
Committee.

         I acknowledge that all shares of Stock issued upon exercise hereof will
be subject to the terms and conditions of the Stockholder Agreement dated
October 8, 1999 by and among IASIS Healthcare Corporation, JLL Healthcare, LLC,
and certain other stockholders as the same may be amended, including the
restriction on transfer ability contained therein.

                                    Signature:
                                                     ---------------------------
                                    Printed Name:
                                                     ---------------------------
                                    Address:
                                                     ---------------------------

                                                     ---------------------------
Dated:
      ------------------------------                 ---------------------------

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