The trust which runs the Alexandra Hospital in Redditch has apologised to the family of a diabetic who died after staff failed to carry out a blood glucose check.
Margaret Pitt, who was 50, suffered an irreversible brain injury while being treated at the hospital in November 2010.
"We are pleased that a settlement has been reached. Following our internal investigation and the inquest into Mrs Pitt's death in June 2012, a number of improvements have been made to our clinical processes and our staff training programmes to ensure that these mistakes don't happen again. We again offer Mrs Pitt's family our unreserved apologies over the failures identified in Mrs Pitt's care."