Jayant Patel, a 56-year-old U.S. citizen, has been investigated over a number of deaths at Bundaberg Base Hospital in Queensland state, where he was employed in 2003.
Queensland Attorney-General Linda Lavarch told state parliament that 86 claims had been settled so far and negotiations on another 19 were scheduled for next week.
Patel was hired by the state government at the public hospital despite having been disciplined for negligence by medical boards in two U.S. states - Oregon and New York.
A six-month inquiry into Patel's tenure at the hospital found that he may have contributed directly to the deaths of at least 13 patients who died through an "unacceptable level of care."
The Australian commission found that Patel "knowingly misled" officials by falsifying his work history and failing to disclose that he had been disciplined for negligence, the AP reports.
Australian police recommended in June that he receive four charges of manslaughter.
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