A long and bitter legal battle between state Medicaid contractor FamilyCare Inc. and the Oregon Department of Health has ended, with the state agreeing to pay the company $22.5 million.

FamilyCare has agreed to donate the money to a medical school in Lebanon, Oregon. The Oregonian/Oregon Live reports. It was a costly win for FamilyCare founder and CEO Jeff Heatherington. The company has shrunk from 370 employees to four.

“Nothing changes the fact that we got the company going and we had 370 of the best people I’ve ever worked with,” Heatherington said.

In 1989, the state created the Oregon Health Plan, an ambitious attempt to reform the health care system. This work calls for the creation of coordinated care organizations to manage the Medicaid system at the local level.

FamilyCare is one of two such organizations in the metropolitan area.

The company has repeatedly clashed with health authorities over rates, saying the state allows CCOs in other metro areas to charge higher rates than FamilyCare.

The state claims Health Share should be paid more because its clients tend to be poorer and sicker. FamilyCare was indicted in 2017.

The Oregon Department of Health admitted no wrongdoing in the settlement.

“I am delighted that we are able to resolve these lawsuits with an agreement that invests in the future of Oregon’s healthcare workforce and strengthens our healthcare system,” said Oregon Surgeon General Patrick Allen.