Norton Healthcare owns Kosair Children’s Hospital, which is supported in part by Kosair Charities.

Norton Healthcare owns Kosair Children’s Hospital, which is supported in part by Kosair Charities.

Kosair Charities and Norton Healthcare said they will remove the “Kosair” name from the children’s hospital within six months but are declining to release details about the settlement agreement that has ended their contentious legal battle.

Kosair Children’s Hospital was created in 1981 when Kosair Crippled Children’s Hospital and Norton Children’s Hospital joined forces. In 2006, Kosair and Norton renewed their affiliation, with Kosair pledging an additional $117 million over 20 years to support KCH.

kosair1In 2014, Kosair alleged in a lawsuit that Norton “is using Kosair’s donations for its own benefit” — rather than their intended purpose of helping hospital patients who cannot pay for their care.

“Norton has been unjustly enriched by its use of the charitable funds contributed by Kosair,” the charity said.

Norton filed a countersuit, alleging, among other things, that Kosair breached its agreement with Norton and failed to make scheduled payments.

The parties’ pugnacious parlance in court stands in stark contrast to their vague description concerning their settlement agreement, which they said will “allow each organization to focus on its respective mission.”

The parties said in a press release today that under the settlement agreement:

  • Kosair’s annual contributions to the hospital currently being held by the court will be transferred to an endowment that will fund charity care at the hospital until he endowment is exhausted.
  • Kosair will make a one-time financial contribution, matched by Norton, to help pay for hospital equipment.
  • The Kosair name will be removed from the hospital within six months.

IL emailed some questions to Norton, but a representative for the private nonprofit health system would not say:

  • How much the hospital incurs annually in charity care.
  • How many years the endowment is expected to last.
  • The amount of the one-time financial contribution.
  • What the hospital’s new name will be.


IL reported two weeks ago that the charity and the company had reached a settlement. At the time, The Courier-Journal, citing two people familiar with the matter, reported the settlement includes Kosair making “a multi-million dollar payment to Norton, although it will be only a fraction of the $117 million Kosair had pledged to give Norton over 20 years.”

Kosair, based on Eastern Parkway, reported revenues of nearly $36 million in 2013, of which more than three-quarters came from investments. In its most recent fiscal year, the organization provided financial support for more than 100 agencies.

Norton, based in Louisville, includes five area hospitals, 12 immediate care centers and 72 primary and specialty care physician offices.