Good Hope is now run by a private management team

Good Hope Hospital NHS Trust, in Sutton Coldfield, suspended Jeff Chandra in August last year while an inquiry into the management of waiting list figures was carried out.

He was dismissed by bosses in December 2002 for "bringing the trust into serious disrepute" after he was found guilty of gross misconduct following an internal investigation.

Mr Chandra, 53, claimed he was made a scapegoat for highlighting irregularities in the figures and was claiming constructive dismissal against the hospital.

Speaking on Friday trust chairman Sir Bernard Zissman said: "This has been a difficult period for all concerned.

"Mr Chandra was courteous and professional in a role which is one of the most challenging roles within the public sector.

"I am pleased that both the hospital and Mr Chandra can now look ahead, we all wish him well for the future."

'Very difficult year'

Mr Chandra said: "I am relieved we have been able to reach an agreement.

"This has been a very difficult year for me and my family.

"I hope to be able to resume my career soon."

No details of the settlement have been released.

Following Mr Chandra's departure from Good Hope the hospital saw it's star rating drop dramatically from three to zero.

It was then named as one of three failing hospitals which would have private management teams drafted in.

In August it became the first British hospital to be run by a private company.

As part of the �1.3m agreement with health service consultants Secta a new chief executive, Anne Heast, was appointed.