Employee Stock Ownership Plan

State of Franklin Healthcare Associates’ Employee Stock Ownership Plan (ESOP)

What is an ESOP?

  • ESOP is a benefit plan that gives all eligible employees ownership interest in the company through shares of stock.
  • The ESOP is funded entirely by SOFHA and shares are awarded at no cost to the team member.
  • Shares of stock are awarded to eligible team members annually.
  • The number of shares is based on a team member’s individual compensation and subject to a vesting schedule.

Why Do We Have an ESOP?

Our ESOP provides a strong sense of ownership and engagement among our team to deliver exceptional care and service to our patients and communities, ensuring our continued success for years to come.  This is how the ESOP benefits our company and our team:

  1. Shared Ownership:  A direct stake in SOFHA’s success encourages a stronger sense of teamwork, accountability, and commitment among the team.
  1. Financial Security:  The hard work and dedication of our team directly contributes to the growth of our organization and the opportunity for our team members to accumulate wealth over time, providing financial security for them and their families.
  1. Long-term Focus:  The ESOP structure promotes a long-term perspective, aligning interests and decisions that benefit the organization and team members in the long run, rather than focusing only on short-term gains.
  1. Enhanced Productivity and Innovation: When team members have a personal stake in the success of the company, they are more motivated to contribute their best ideas and efforts which creates a culture of continuous improvement.
  1. Retirement Benefits: The ESOP serves as an additional retirement benefit that requires no financial contribution from team members, helping to secure their future as they work toward retirement goals.
  1. Stronger Commitment to Our Mission: As co-owners, we strengthen our commitment to delivering high-quality healthcare services and improving the health and well-being of our patients, team members, and the communities we serve.