LOUISVILLE, Ky. (WHAS11)— Kosair Charities filed a lawsuit against Norton Healthcare which operates Kosair Children's Hospital and on Friday, May 9, the president of Kosair Children's Hospital reacted.
At the news conference the president of Kosair Children's Hospital, Thomas Kmetz, said that Kosair Charities is doing "intentional damage" to Kosair Children's Hospital.
The president said Kosair Charities is frustrated that Norton's children's hospital foundation is raising more money.
The names of Norton Healthcare and Kosair Charities can be read side by side outside Kosair Children's hospital, but they are two very separate organizations that are now at odds.
Kosair Charities, which provides donations to the hospital, is alleging, "Norton mismanages the charity's donations, commingles them with other corporate funds, and refuses to provide an accounting of how Kosair donations are used to benefit sick and injured children. Kosair also alleges that Norton and recklessly misuses the Kosair name."
Norton Healthcare claims Kosair has violated the long-term agreement by not providing the agreed-upon amount of funding saying, "[Kosair Charities] has let down the children they have committed to support."
Norton said they have tried to meet Kosair's demands and points out the long-term agreement allows them to put the word, "Kosair," on the name of their children's hospital.
But Kosair Charities wants Norton to provide accounting of exactly where their donations go.
Norton claims they tried to accommodate the requests from Kosair they considered reasonable.
With the lawsuit pending, Kosair Charities said it has placed $6 million in donations into an escrow account--rather than trusting Norton Healthcare with the money.
Kmetz said the lawsuit is extremely disappointing and detrimental to progress.
The attorney for Norton Healthcare said the Kosair name could be pulled from Kosair Children’s Hospital as result of Kosair Charities withholding money.
Norton in their statement also said, "Over the last few years, Kosair Charities has engaged in a continuing systematic pattern of raising baseless allegations in an effort to avoid its contractual obligations to the children's hospital that carries its name. Its allegations are particularly offensive to the many dedicated caregivers serving Kosair Children's Hospital on a daily basis."
Norton calls many of the requests from Kosair outlandish.