Kosair Charities and Norton Healthcare have reached a settlement that will end their two-year-old lawsuit, their decades-long relationship and will remove the “Kosair” name from the local children’s hospital.
The parties issued a joint statement saying they had reached an agreement that “will benefit the children of Kentucky” but declined to provide details.
“Further information will be provided once the court proceedings are officially dismissed,” Thomas Johnson, Norton’s chief communications officer, told IL via email.
Dan Hartlage, of Louisville-based PR firm Guthrie/Mayes, who is handling the matter for Kosair, told IL that beyond the statement, the organization had no comment.
Kosair Charities will continue to support health care for children, Hartlage said.
It just won’t be with Norton.
Kosair in 2014 filed a lawsuit that alleged Norton misused $115 million designated to help charity care patients at the children’s hospital. Norton filed a countersuit, alleging, among other things, that Kosair breached its agreement with Norton and failed to make scheduled payments.
According to The Courier-Journal, which cited two people familiar with the matter, the settlement agreement 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 Children’s Hospital was created in 1981 when Kosair Crippled Children’s Hospital and Norton Children’s Hospital joined forces.
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, a Louisville-based private, nonprofit health care system, includes five area hospitals, 12 immediate care centers and 72 primary and specialty care physician offices.