After five-years of negotiations and more than two years of litigation, Louisville, Ky.-based Norton Healthcare and University of Louisville have ended a dispute over Kosair Children's Hospital.
The dispute was ignited in August 2013, after Norton announced plans to partner with University of Kentucky HealthCare to jointly operate Louisville-based Kosair Children's Hospital and Kentucky Children's Hospital in Lexington. Norton built and operates Kosair, but a 1981 land lease with the state required the hospital be operated partly for the benefit of U of L and the commonwealth, resulting in U of L's use of Kosair as a pediatric teaching hospital and research facility.
The agreement includes an amendment to the land lease that secures Norton's ownership and control of the hospital. Under the agreement, U of L will be Norton's primary academic partner for pediatrics with at least 90 percent of Norton's residency positions at the children's hospital being made available to U of L. Both organizations will appoint three representatives each to a new Pediatric Academic Medical Center Committee, which will oversee and make recommendations for the affiliation relationship. U of L has also agreed to participate in collaborative pediatric care joint programs with Norton and UK and/or others.
The agreement also calls for Norton to extend its current total of $30 million in annual funding for U of L academic support and physician services over the next eight years, with an additional $3 million annually for additional pediatric care investments.
With the agreement in place, Norton can move forward with a five-year, $35 million capital improvement plan for Kosair. The project was put on hold during litigation.
"This agreement allows both organizations to continue fulfilling their missions of caring for the children of the commonwealth; U of L through the education and training of future healthcare providers and conducting cutting-edge research and Norton as the primary site for the provisions of the highest levels of healthcare possible," said James Ramsey, PhD, president of the University of Louisville.
More articles on healthcare litigation:
Hospital CFO charged with vandalizing CEO's house in Oregon
7 latest healthcare industry lawsuits, settlements
32 hospitals to pay $28M to settle false claims allegations related to kyphoplasty