Legal action was launched against Walsall Healthcare NHS Trust after the family of Susan Hearsey alleged the 64-year-old was subjected to ‘inhumane’ treatment after being admitted to the hospital.
The trust, which has issued a formal apology to the family, has now also agreed to an independent investigation.
Ms Hearsey was admitted to the hospital in September 2013 following a fall.
It was alleged that she was not provided adequate hygienic care and that the doll she loved as if it was her own baby was purposefully damaged by a nurse because Ms Hearsey was not doing as she was asked.
Ms Hearsey’s sister Jane Dunn, said the ordeal, in which the doll was found on the floor with its arm severed, some clothes missing, the legs damaged and a chunk of its hair missing, had a ‘devastating effect’ on Ms Hearsey and her family.