Kosair Charities and Norton Healthcare settle 2-year lawsuit - WDRB 41 Louisville News

Kosair Charities and Norton Healthcare settle 2-year lawsuit

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Kosair Children's Hospital in downtown Louisville Kosair Children's Hospital in downtown Louisville

LOUISVILLE, Ky. (WDRB) -- Norton Healthcare and Kosair Charities have agreed to settle a two-year-old court fight over the finances of Kosair Children’s Hospital.

The settlement, which has not yet been submitted to a judge, will end Kosair and Norton’s decades-long partnership and remove Kosair’s name from the hospital, WDRB confirmed Tuesday.

Norton and Kosair issued a joint statement confirming the settlement:

Norton Healthcare and Kosair Charities Committee are pleased to announce that they have resolved their differences and reached a settlement agreement. Both parties believe the agreement will benefit the children of Kentucky. The parties decline further comment at this time. Further information will be provided once the court proceedings are officially dismissed.

The dispute, which landed in court in May 2014, centers on Kosair’s financial support for the hospital, which Norton owns and operates.

Norton has said Kosair failed to live up to its contractual obligations, while Kosair alleged that its donations were being diverted from the hospital to subsidize the broader Norton system, including the salaries of its top executives.

In exchange for naming rights to the hospital, Kosair agreed in 2006 to pay Norton a total of $117 million in annual installments from 2007 to 2026, according to court records.

Kosair paid Norton about $28 million from 2007 to 2012, according to a report from a forensic accountant hired by Norton. Court records show the relationship between the two organizations becoming strained in 2013, which eventually led to Kosair filing suit and Norton filing counterclaims.  

There was no immediate information Tuesday on how the settlement might affect the naming rights agreement.

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