Kosair Charities files lawsuit against Norton Healthcare - WDRB 41 Louisville News

Kosair Charities files lawsuit against Norton Healthcare

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LOUISVILLE, Ky. (WDRB) -- Kosair Charities has filed a lawsuit against Norton Healthcare, accusing it of misspending donations and refusing to provide an account of how contributions to Kosair Children's Hospital are spent.

In the suit filed in Jefferson Circuit Court, Kosair Charities alleges mismanagement and claims Norton mixes donations with corporate funds. The charity also accuses Norton of misusing the Kosair name.

Kosair Charities President Randy Coe says the organization has given $114 million in contributions to the Louisville children's hospital which bears its name, but is operated by Norton. The lawsuit accuses Norton of not spending all of the donations on the children's hospital.

Kosair says it has repeatedly requested from Norton an accounting of how its donations are spent, but Norton has refused to do that after almost a year of negotiations. Don Cox, an attorney for Kosair Charities, says some of the monies have gone into Norton's general fund and have been used to pay bonuses to executives.

"We believe that rather than our funds going into a big pot -- and Norton will not deny that our funds don't go directly to the hospital, but instead they go into the overall Norton pot -- and from there they pay big salaries, they do other things," Cos said. "We want the money to stay at the hospital."

Kosair Charities officials say they regret having to file the lawsuit and that they are doing so only as a last resort.

Norton Healthcare Chief Communications Officer Thomas Johnson sent this statement to WDRB: "It is preposterous for Kosair Charities to suggest they do not know where their contributions go or how they are used. Kosair Charities gets to designate specifically how a significant part of their dollars are spent using a menu of options we provide to them."

Thomas also said that Kosair Charities has made "substantial demands" that were "outlandish and clearly not in the best interest of Kosair Children's Hospital or the patients it serves."

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