Workers get stake; Memphis hospital converts to employee stock plan.(The Week in Healthcare)(Delta medical center)(Brief article)

Modern Healthcare, August, 2006 by Romano, Michael

Byline: Michael Romano

While some nurses don't want to be considered hospital supervisors, others may end up being hospital owners.

The owners of Delta Medical Center, a 170-bed hospital in Memphis, Tenn., have created an employee stock ownership plan, transferring all of the facility's stock to a pension plan controlled by employees, officials announced.

The sale of the for-profit hospital by Neil McLean and Craig Watson, who purchased Delta in 1999, is one of the first recent examples of hospitals owned by employees through these types of stock plans.

Under the deal, McLean and Watson sold all of their holdings to the newly created ESOP, which borrowed the money for the purchase from a local bank.

McLean, the hospital's...

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