CHARLESTON, W.Va. - Charleston Area Medical Center trustees agreed Wednesday to pay Dr. R.E. Hamrick Jr. $11.5 million to put an end to a contentious four-year dispute with the surgeon.

CAMC must pay Hamrick the entire amount by Sept. 5. Lawyers from both sides hammered out the agreement earlier this week.

"It's over," said Karen Miller, Hamrick's lawyer and sister. "Hopefully, this will be the beginning of better treatment for the doctors, nurses and medical staff at CAMC."

CAMC's Board of Trustees voted unanimously on the $11.5 million payment Wednesday morning after a 30-minute executive session behind closed doors.

Hamrick has agreed to end the case after he receives the money, CAMC said in a release. CAMC has abandoned plans to appeal to the state Supreme Court.

CAMC is negotiating with its insurance carriers to determine whether they'll pay a portion of the settlement. Two insurance companies already have sued the hospital, alleging CAMC's insurance policy doesn't cover the jury award.

CAMC plans to pay at least $2 million of the $11.5 million out of its cash reserves.

In February, a jury awarded Hamrick $25 million, deciding that CAMC executives sullied his reputation when they abruptly revoked his privileges to operate on patients at the hospital in 2004. Hospital administrators took part in "fraudulent, malicious, oppressive and reckless conduct," the jury found.

CAMC appealed the verdict, and a judge reduced it to $10 million earlier this summer.

In the release, CAMC said interest on the $10 million was mounting at a rate of 8.5 percent, and the hospital also faced having to pay Hamrick's attorneys' fees, which exceed more than $1 million.

Hamrick sued the hospital in 2004. The surgeon wanted to use $1 million of his own money to insure himself against medical malpractice claims instead of going through a commercial insurance company. CAMC executives balked at the plan and abruptly yanked Hamrick's privileges to practice.

CAMC trustees and executives declined to comment Wednesday.

Hamrick's lawyers said the case highlights the need for CAMC to enact term limits for board members.

CHARLESTON, W.Va. - Charleston Area Medical Center trustees agreed Wednesday to pay Dr. R.E. Hamrick Jr. $11.5 million to put an end to a contentious four-year dispute with the surgeon.

CAMC must pay Hamrick the entire amount by Sept. 5. Lawyers from both sides hammered out the agreement earlier this week.

"It's over," said Karen Miller, Hamrick's lawyer and sister. "Hopefully, this will be the beginning of better treatment for the doctors, nurses and medical staff at CAMC."

CAMC's Board of Trustees voted unanimously on the $11.5 million payment Wednesday morning after a 30-minute executive session behind closed doors.

Hamrick has agreed to end the case after he receives the money, CAMC said in a release. CAMC has abandoned plans to appeal to the state Supreme Court.

CAMC is negotiating with its insurance carriers to determine whether they'll pay a portion of the settlement. Two insurance companies already have sued the hospital, alleging CAMC's insurance policy doesn't cover the jury award.

CAMC plans to pay at least $2 million of the $11.5 million out of its cash reserves.

In February, a jury awarded Hamrick $25 million, deciding that CAMC executives sullied his reputation when they abruptly revoked his privileges to operate on patients at the hospital in 2004. Hospital administrators took part in "fraudulent, malicious, oppressive and reckless conduct," the jury found.

CAMC appealed the verdict, and a judge reduced it to $10 million earlier this summer.

In the release, CAMC said interest on the $10 million was mounting at a rate of 8.5 percent, and the hospital also faced having to pay Hamrick's attorneys' fees, which exceed more than $1 million.

Hamrick sued the hospital in 2004. The surgeon wanted to use $1 million of his own money to insure himself against medical malpractice claims instead of going through a commercial insurance company. CAMC executives balked at the plan and abruptly yanked Hamrick's privileges to practice.

CAMC trustees and executives declined to comment Wednesday.

Hamrick's lawyers said the case highlights the need for CAMC to enact term limits for board members.

In June, CAMC doctors recommended that trustees' terms be limited to six years. Trustees are now reappointed every three years, with no term limits.

"Hopefully, board members will follow the recommendation of the medical staff and agree to a two-term limit so that fair and unbiased decisions will be made in the future," Miller said.

Earlier this week, a judge ordered CAMC to pay $154,543 to Hamrick's lawyers as part of a separate lawsuit that accused hospital executives of violating the state's Open Hospital Proceedings Act.

The lawsuit forced CAMC to open its medical staff executive committee meetings to the public. CAMC previously held the sessions behind closed doors.

In his ruling, Judge Jack Alsop of Webster County also scolded CAMC lawyers, who argued that awarding attorney's fees to a member of Hamrick's legal team, Scott Segal, would violate public policy.

Segal is married to state Supreme Court Chief Justice Robin Davis, who appointed Alsop to the Hamrick case after all seven Kanawha County Circuit Court judges recused themselves.

Alsop noted that he was assigned to the case months before Segal was hired to help represent Hamrick.

"This issue is a red herring filed by a disgruntled party, and unfairly attacks the integrity of the court, Justice Davis and the judiciary," Alsop wrote.

In an unrelated matter Wednesday, CAMC trustees announced that the hospital has settled a class-action lawsuit that alleged CAMC overcharged former uninsured patients. The patients will be eligible for $460,000 in cash refunds.

The lawsuit was one of more than 100 filed against nonprofit hospitals throughout the United States.

CAMC said the hospital started offering discounts to patients without insurance about four years ago.

If a judge approves the agreement, CAMC plans to mail letters to former patients and post legal ads in newspapers about the refunds.

Reach Eric Eyre at erice...@wvgazette.com or 348-4869.