Jury rejects physician's allegations of defamation by hospital and medical group

A county jury awarded a Eugene, Ore., surgeon $156,333 in economic damages — substantially less than the $9.8 million he sought in a contract and defamation lawsuit against Springfield, Ore.-based McKenzie-Williamette Medical Center and its physician group, which terminated his contract in 2015, reports The Register Guard.

The jury ruled on May 5 that McKenzie Physician Services, the hospital's physician group, had breached the contract of Kristian Ferry, MD, but they rejected his claim that the physician group and hospital were liable for defamation, according to the report.

During the three-week civil case trial, Dr. Ferry's attorney argued his client was fired because hospital leaders disapproved of his work at an outpatient facility not operated by McKenzie-Williamette. When Dr. Ferry operated on patients at the Spine Surgery Center, a physician-owned practice in Eugene, Ore., the hospital did not receive facility fees.

"He was fired because the hospital wanted more money," Dr. Ferry's attorney told the jury, according to the report.

However, the hospital and physician group's attorney contended that officials had just cause to fire Dr. Ferry after discovering a brochure that advertised his services at the Spine Surgery Center. Dr. Ferry said the brochure was made without his knowledge, according to the report.

The hospital's attorney also said Dr. Ferry failed to substantiate the defamation claim.

Dr. Ferry sought up to $6 million in economic damages for the contract breach and $3.8 million in compensation for the alleged defamation, according to the report.

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