Charleston Area Medical Center doesn't plan to lay off employees or eliminate pay raises this year in the wake of a recent $25 million jury award against the hospital, CAMC executives said Wednesday.

"We plan on operating based on our budget this year," said CAMC Chief Executive Officer David Ramsey. "We're not going to make any changes. We're hopeful there will be no disruption in the operation of the hospital."

Nonetheless, Ramsey called the $25 million verdict "devastating to the organization and everybody who works here."

"It's discouraging that these individuals who came down with the verdict didn't believe our case and didn't value the great work the hospital does," Ramsey told Board of Trustees members during a special meeting Wednesday in Charleston.

On Feb. 7, a Kanawha County jury awarded Charleston surgeon Dr. R.E. Hamrick Jr. $5 million in compensatory and $20 million in punitive damages, deciding that hospital executives smeared Hamrick's reputation and wrongfully revoked his privileges in a dispute over the doctor's malpractice insurance.

The jury found that CAMC administrators engaged in "fraudulent, malicious and oppressive conduct" against Hamrick.

Hospital officials expect CAMC will have to pay $15.2 million toward the verdict, including $2 million in legal fees to their lawyers and Hamrick's lawyers, after the hospital's insurance coverage kicks in. The money would come from CAMC's cash reserves, executives said.

Hamrick's lawyers said Wednesday that CAMC could have settled the case for an amount covered by its insurance policies, but the hospital refused.

"They had the opportunity to settle the case within the policy limits, but they chose to put the hospital and community at risk," said Scott Segal, Hamrick's lead lawyer. "The question is: Who made that decision?"

CAMC lawyer Robert O'Neil said the hospital repeatedly tried to settle the case before and during the trial.

Doctors who spoke at Wednesday's special meeting said they worry the jury verdict will compromise patient care.

"Any time you have to spend $15 million, how can it not affect the way we care for people?" asked Dr. Tom Bowden, who also serves on CAMC's Board of Trustees.

Charleston Area Medical Center doesn't plan to lay off employees or eliminate pay raises this year in the wake of a recent $25 million jury award against the hospital, CAMC executives said Wednesday.

"We plan on operating based on our budget this year," said CAMC Chief Executive Officer David Ramsey. "We're not going to make any changes. We're hopeful there will be no disruption in the operation of the hospital."

Nonetheless, Ramsey called the $25 million verdict "devastating to the organization and everybody who works here."

"It's discouraging that these individuals who came down with the verdict didn't believe our case and didn't value the great work the hospital does," Ramsey told Board of Trustees members during a special meeting Wednesday in Charleston.

On Feb. 7, a Kanawha County jury awarded Charleston surgeon Dr. R.E. Hamrick Jr. $5 million in compensatory and $20 million in punitive damages, deciding that hospital executives smeared Hamrick's reputation and wrongfully revoked his privileges in a dispute over the doctor's malpractice insurance.

The jury found that CAMC administrators engaged in "fraudulent, malicious and oppressive conduct" against Hamrick.

Hospital officials expect CAMC will have to pay $15.2 million toward the verdict, including $2 million in legal fees to their lawyers and Hamrick's lawyers, after the hospital's insurance coverage kicks in. The money would come from CAMC's cash reserves, executives said.

Hamrick's lawyers said Wednesday that CAMC could have settled the case for an amount covered by its insurance policies, but the hospital refused.

"They had the opportunity to settle the case within the policy limits, but they chose to put the hospital and community at risk," said Scott Segal, Hamrick's lead lawyer. "The question is: Who made that decision?"

CAMC lawyer Robert O'Neil said the hospital repeatedly tried to settle the case before and during the trial.

Doctors who spoke at Wednesday's special meeting said they worry the jury verdict will compromise patient care.

"Any time you have to spend $15 million, how can it not affect the way we care for people?" asked Dr. Tom Bowden, who also serves on CAMC's Board of Trustees.

State Chamber of Commerce Director Steve Roberts said the $25 million verdict could contribute to West Virginia's reputation as a place where trial lawyers win massive awards, scaring off businesses that might want to locate in West Virginia.

"A jury award of this size will just fuel that kind of discussion," Roberts said.

Hamrick sued CAMC in September 2004 after administrators pulled his privileges to practice at the hospital. The surgeon's right to practice was reinstated by a Supreme Court order four days later.

Hamrick wanted to fund himself against medical malpractice with $1 million of his own money instead of going through a commercial insurance company. CAMC officials balked at the plan.

O'Neil told CAMC trustees Wednesday that the hospital plans to ask a judge to reduce the verdict amount or grant a new trial.

Hospital lawyers believe the judge who heard the case should have allowed CAMC to call an expert witness to testify about whether hospital executives acted reasonably when they refused to accept Hamrick's self-insurance plan.

CAMC lawyers also wanted to show the jury changes to the state's malpractice insurance laws that were made after Hamrick filed his lawsuit, and to present information about whether Hamrick properly transferred funds to an account to cover malpractice claims.

If the hospital can't get a new trial, CAMC lawyers plan to appeal to the state Supreme Court.

"Hopefully, it will get totally reversed, and we won't have to pay anything," Ramsey said.

Ramsey noted that the $25 million verdict was higher than the $15 million CAMC spent to purchase the former Putnam General Hospital in 2006.

"The sooner this gets resolved the better for everybody at CAMC," he said.

To contact staff writer Eric Eyre, use e-mail or call 348-4869.