CHARLESTON, W.Va. -- Charleston Area Medical Center trustees today agreed to pay Dr. R.E. Hamrick Jr. $11.5 million to put an end to a contentious four-year dispute with the surgeon.
Lawyers from both sides hammered out the settlement earlier this week. CAMC must pay Hamrick the entire $11.5 million by Sept. 5.
"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 settlement this morning after a 30-minute executive session behind closed doors.
Hamrick has agreed to end the case after he receives the payment, CAMC said in a release. CAMC 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 smeared his reputation when they abruptly revoked his privileges to operate on patients at the hospital in 2004. The jury found that hospital administrators took part in "fraudulent, malicious, oppressive and reckless conduct."
CAMC appealed the verdict, and a judge reduced it to $10 million -- plus interest -- 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 legal fees, which exceed more than $1 million.
Hamrick sued the hospital in 2004, alleging CAMC improperly yanked his privileges to practice. The surgeon wanted to used $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.
CAMC trustees and executives declined to comment this morning.
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