The West Virginia Supreme Court voted 5-0 to refuse to hear Charleston Area Medical Center’s appeal of a 2005 circuit court ruling that upheld a physician’s right to provide his own medical malpractice insurance. The hospital had sought to overturn a lower court ruling that granted summary judgment to Dr. R. E. Hamrick Jr., who alleged that CAMC improperly pulled his privileges after he established a $1 million self-funded program instead of obtaining medical liability coverage through a commercial insurer. CAMC officials had argued that his fund was not actuarially sound and did not meet other requirements.
But the court said Hamrick’s program provides the same protection as coverage by a commercial insurer and CAMC did not prove that the program was not actuarially sound.
A jury will decide damages in the lawsuit’s second phase, which alleged that CAMC officials interfered with Hamrick’s right to treat his patients by taking away his hospital privileges.
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