Norton Healthcare and the University of Louisville have announced details of an accord that ends a struggle over control of Kosair Children’s Hospital.
The deal, ending more than two years of litigation, says UofL will be Norton’s primary academic partner for pediatrics. At least 90 percent of Norton’s residency positions at the children’s hospital will be made available to UofL.
Norton can still pursue other third-party relationships, as long as its commitments to UofL are fulfilled.
The dispute began in 2013 when Norton announced it would collaborate in pediatrics with the University of Kentucky and its Kentucky Children’s Hospital in Lexington. UofL responded by threatening to evict Norton from Kosair, prompting Norton to file a lawsuit.
Norton built and operates Kosair Children’s Hospital, but UofL uses it as its pediatric teaching and research hospital under a state land lease.
The agreements include an amendment to the 1981 land lease between Norton and the state, securing Norton’s “ownership and control of the hospital,” according to a press release. It secures UofL’s academic affiliation between the hospitals for an initial eight-year term with automatic annual renewals.
The deal also makes it possible for Norton to continue plans for more than $35 million in additional capital improvements to its children’s hospital over the next five years. Those plans had been held up due to the litigation.
Additionally, UofL agreed to participate in collaborative pediatric care joint programs with Norton and UK and/or others.
Under the terms of the agreement, UofL will receive $272 million over eight years. Norton has extended its current total of $30 million in annual funding (through separate individual contracts as is currently done) for UofL academic support and physician services over the next eight years, with an additional $3 million annually for pediatric care investments. UofL also will receive a one-time payment of $8 million to resolve any and all financial disputes from the past.
Source: AP
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