One of the biggest news stories to hit the health care industry last year was the leveraged Employee Stock Ownership Plan (ESOP) sale of 104 Hospital Corporation of America (HCA) hospitals to a newly formed company, Health Trust, Inc. (HTI). Much skepticism regarding the benefits of this transaction was raised. To many individuals, HCA was the primary, if not exclusive, beneficiary. The management and employees of HTI were viewed by many as being "left out to dry." These initial opinions were almost always based on a total ignorance of the substantial benefits--primarily but not exclusively tax benefits--that are available in an ESOP transaction. My awareness of these benefits comes through my limited involvement as a consultant to the agent bank in the HCA-HTI transaction. This article will acquaint health care executives with the basic features and benefits of an ESOP alternative. EOPSs are a viable alternative for both voluntary and investor-owned health care firms.