Dr Jayant Patel

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THE parents of a three-year-old US boy who died after an operation done by Dr Jayant Patel, have agreed to settle a wrongful death lawsuit for $US200,000 ($A247,000).

Patel is facing 13 charges in Australia, including three of manslaughter over the deaths of three patients at Bundaberg Hospital in Queensland.

The parents of Ian McClellan contended Patel perforated the boy's bowel while attempting to place a feeding tube inside of him on February 5, 1999.

The Oregonian newspaper reported the lawsuit settlement on its web site on Wednesday.

The parents argued that Patel opened the boy up again the next day and found the perforation.

The boy died a painful death by septic shock eight days later, the suit filed in Multnomah County Circuit Court said.

Patel was working for Kaiser Permanente in Portland from 1989 to 2001, but performed the surgeries on the boy at another hospital in the city - OHSU Doernbecher Children's Hospital.

The boy's parents, Ana Maria and Matthew McClellan, originally sought $US1.55 million ($A1.91 million) in their suit against all three.

A confidentiality agreement prevents any comment on the settlement, said the family's lawyer, Robert Beatty-Walters.

A judge was scheduled to consider the settlement on Thursday.

It's unclear from court records what portion of the $US200,000 will by paid by Patel and the two hospitals.

The McClellans said they didn't learn the reason for their son's death until after April 15, 2005, when The Oregonian published the first of a series of articles about growing concern over Patel's work in the United States and abroad.

The boy's parents contended that Patel and the hospitals misled the McClellans by saying their son had developed a postoperative infection of unknown origin.

Patel has been reprimanded by medical boards in New York and Oregon.

He was sued repeatedly for malpractice in Oregon before his licence was suspended and he moved to Queensland to continue working as a surgeon.

He fled back to Portland in April 2005.

An Australian inquiry later linked him to 17 deaths during his time as Bundaberg Hospital director of surgery.

In February 2006 police referred an evidence brief to Queensland Director of Public Prosecutions (QDPP).

In June 2008 Patel consented to return to Australia to face charges.

He returned on July 21, and was held in custody in Brisbane before being granted bail.

At the commital hearing in April he was committed to stand trial on 13 charges, including three of manslaughter.