Home » Kosair Charities files lawsuit demanding Norton Healthcare account for how it spends charity’s funding

Kosair Charities files lawsuit demanding Norton Healthcare account for how it spends charity’s funding

Organization places $6 million in escrow until concerns addressed

LOUISVILLE, KY. (May 9, 2014) – Kosair Charities filed a lawsuit against Norton Healthcare Inc. demanding greater accountability for how Norton Healthcare utilizes funds raised by the charity.

kosairKosair Charities has requested that Norton Healthcare provide an accounting of how the charity’s financial contributions are spent. During this same period, Kosair Charities has asked for assurances that the money is going specifically to Kosair Children’s Hospital.  Despite an agreement that calls for separate accounting, Norton Healthcare has been unwilling, Kosair alleged in a press release issued today.

“This lawsuit was filed because Norton Healthcare has refused to comply with a simple and reasonable request,” said Kosair Charities President Randy Coe. “Despite an agreement between Norton Healthcare and Kosair Charities, Norton Healthcare refuses to give us any form or documentation or accounting that ensures us that the funds are being used to advance the quality of care at Kosair Children’s Hospital.”

As a means of showing Kosair Charities’ good intentions, more than $6 million dollars have been deposited in an interest-bearing escrow account, Coe said.

Kosair Charities – which operates independently – has given more than $114 million to the hospital since 1981; however, concerns have arisen over the way such funds have been applied by Norton Healthcare and how future donations will be used, Kosair said. The charity wants assurances that the funds will be fully utilized specifically to advance the quality of care at Kosair Children’s Hospital and not simply used to supplement Norton Healthcare’s general budget.

Kosair Charities has also objected to Norton Healthcare’s expanded use of the Kosair Charities name beyond what was contemplated in its agreements with Norton Healthcare.

“We have a long history of helping with the care of children at Kosair Children’s Hospital,” Coe said.  “We have tremendous appreciation and admiration for the wonderful doctors, nurses and staff who serve in the hospital.  We have provided tens of millions of dollars to advance the quality of care at the hospital, and we want to make sure our donations are in fact doing so.”

“The appearance of charitable funds going into Norton Healthcare’s enterprise budget puts the reputation and goodwill of Kosair Charities at stake,” he added. “Donors have asked us for an accounting of how their contributions are applied at Kosair Children’s Hospital. We have been frustrated by our inability to provide that information.”

The lawsuit will not affect Kosair’s other commitments in Kentuckiana, Coe said.