A message from Dr. James R. Ramsey and Dr. Gregory Postel

From the desk of Jim Ramsey
A message from Dr. James R. Ramsey and Dr. Gregory Postel

December 21, 2015

Dear Friends of UofL,

As you likely know, the University has been in mediation discussions with Norton Healthcare over the past several weeks to work toward a resolution of disagreements related to the Academic Affiliation Agreement for pediatric services at Kosair Children’s Hospital. We are happy to report that we have come to a fair and mutually beneficial agreement that establishes UofL and Norton Healthcare as exclusive partners at Kosair Children’s Hospital for the next eight years.

Under the terms of the deal, UofL guarantees that all of its pediatric residents will utilize the Kosair Children’s Hospital as the primary hospital training site. Additionally, UofL guarantees that the majority of its pediatric hospital admissions will be made to Kosair Children’s Hospital. In return, Norton guarantees that 90 percent of the residency positions at Kosair Children’s Hospital will be made available to UofL, but that the number of residency positions supported by Norton will not be less than the current commitment, unless both parties agree.

Under the terms of the agreement, UofL will receive approximately $272 million over eight years. UofL will receive $30 million annually as payment for physician services provided at the hospital by UofL faculty and residents, as well as the support of educational programs and research. Norton will provide an additional $24 million over eight years to support University projects to be determined by a committee (Pediatric Academic Medical Center Committee) composed of three representatives from Norton and three representatives from UofL. UofL also will receive a one-time payment of $8 million to resolve any financial disputes from the past.

Additionally, Norton will invest at least $35 million over the next five years in capital improvements at Kosair Children’s Hospital.

For your convenience, you can read the joint news release announcing the agreements here (UofL NHC Settlement is a PDF)

We would be remiss in not pointing out the sage advice and guidance provided by both the Bevin administration and the UofL Board of Trustees on this matter.

We thank you for the trust you have put in us as we always work to guarantee the future of the UofL School of Medicine, its Department of Pediatrics and our ability to train the future generations of health care providers.

Dr. James R. Ramsey, President

Dr. Gregory Postel, Interim Executive Vice President for Health Affairs

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