The South Australian government will pay compensation to the families of more than 200 children caught up in the Adelaide Women's and Children's Hospital cochlear implant bungle.
The decision follows the release of an independent review on Monday that uncovered longstanding systemic problems with the cochlear implant service dating back almost two decades.
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The report identified 208 children who had received care through the service since 2006.
It found there were significant gaps, including inadequate processes, policies, competency frameworks for staff and a lack of appropriate clinical training dating back many years.
Health Minister Chris Picton ordered the review after an internal inquiry found as many as 30 children had issues with implant mapping at the hospital dating back several years.
Mapping for implant recipients supports the adjustment and programming of the devices for optimum hearing. Under mapping can result in lifelong development issues.
The state government on Monday said it would offer one-off payments to families with children who had received cochlear implant mapping at the hospital dating back to 2006.
Those who were under-mapped will receive an initial $50,000. This does not replace a family's full compensation rights.
Families whose children were not under-mapped will be entitled to $5,000 in lieu of the stress suffered.
The hospital has already committed more than $2 million over four years for additional staffing for the service and the state government will fund further costs as the recommendations are implemented.
An additional $1.3 million will also be spent on new equipment for the newborn hearing screening program.