Abuse Survivors from Indian Hospitals May Receive Up to $200K in Proposed Settlement.
Ottawa Reaches Proposed Settlement with Indigenous Survivors of Indian Hospitals
The Canadian government has reached a proposed settlement agreement with Indigenous survivors of federally operated Indian hospitals, offering individual compensation ranging from $10,000 to $200,000.
Indian hospitals, which were substandard segregated healthcare facilities, were established in the 1930s to isolate Indigenous people in an effort to curb the spread of tuberculosis (TB). Tens of thousands of First Nations, Inuit, and Métis patients, including children, were admitted to these overcrowded, poorly staffed, and unsanitary institutions. Survivors report facing physical and sexual abuse from hospital staff, forcible confinement to beds without medical justification, and even being subjected to medical experiments.
The settlement, announced on Thursday, seeks to resolve a $1.1-billion class-action lawsuit representing former patients of this discriminatory healthcare system. The agreement provides an uncapped amount of compensation to eligible survivors.
“It’s a meaningful day,” said Ann Hardy, the representative plaintiff, who was admitted to Charles Camsell Indian Hospital in Edmonton from January to May 1969.
“I was admitted because I had TB and was supposed to heal. But instead, I experienced fear, isolation, and trauma that has stayed with me for decades.”
The agreement covers 33 federally run Indian hospitals that operated between January 1936 and December 1981, excluding sanatoriums.
Five Years of Negotiations
Under the proposal, individual compensation will be determined based on the severity of verbal, physical, and/or sexual abuse endured. Survivors have recounted harrowing experiences, including being beaten with rods and sticks, prolonged isolation, deprivation of food and water, and even being forced to eat their own vomit.
Immediate family members of survivors will also be eligible for compensation.
Additionally, a foundation will be established to oversee a $150-million healing fund for survivors. This fund will support Indigenous language revitalization, education, and wellness initiatives. A separate $235.5-million research and commemoration fund will be allocated to preserving the history of these institutions and assisting with local burial site investigations.
“I wish this chapter of our history had never happened,” said Crown-Indigenous Relations Minister Gary Anandasangaree during the announcement. “But it did. And so, we have a responsibility not just to acknowledge it, but to act.”
The agreement follows five years of negotiations between the federal government and legal representatives in the case of Ann Cecile Hardy v. Attorney General of Canada, originally filed in 2018 and certified in 2020. An agreement-in-principle was reached in December 2024. The settlement also includes three related class actions filed subsequently: Deborah Azak and Wayne Louie (Supreme Court of British Columbia), Jean John Baptiste Pambrun (Court of King’s Bench Saskatchewan), and Blanche Bull (Court of King’s Bench Alberta).
Beyond compensation, Indigenous Services Canada has pledged $150 million to provide survivors with mental health and legal support throughout the claims process. This funding will also cover the administrative costs of the settlement, which will be handled by independent third parties.
The Federal Court will review and decide whether to approve the proposed settlement during hearings scheduled for June 10 and 11. Survivors are encouraged to provide feedback ahead of the hearings.
