By Olivia Krauth–

After two years of litigation, U of L and Norton Healthcare have settled their battle over control of Kosair Children’s Hospital.

“We are happy to report that we have come to a fair and mutually beneficial agreement that establishes U of L and Norton Healthcare as exclusive partners at Kosair Children’s Hospital for the next eight years,” President James Ramsey said in an email to faculty and staff today.

The announcement, first made Friday, became official today after approval of the Bevin administration and U of L Physicians.

The disagreement initially began when Norton announced they would also be partnering with the University of Kentucky and Kentucky Children’s Hospital. U of L uses Kosair as a training spot for pediatrics, but Norton operates the hospital.

In the new agreement, U of L said all pediatric residents will use the hospital, and the majority of pediatric admissions will go there. Norton will, in return, make 90 percent of the residency positions there available to U of L.

U of L will receive $272 million over eight years as “payment for physician services provided at the hospital by U of L faculty and residents, as well as the support of educational programs and research,” said Ramsey.

Norton will also provide $24 million to support U of L projects, $8 million to cover past financial issues and $35 million in capital improvements at Kosair.