Survivors of abuse at Indian hospitals eligible for up to $200K in proposed settlement
Deal covers Indigenous patients admitted to government-run facilities
WARNING: This story contains distressing details.
Ottawa has reached a proposed settlement agreement with Indigenous survivors of the segregated health facilities known as Indian hospitals, to provide individual compensation ranging from $10,000 to $200,000.
Indian hospitals were substandard facilities operated by the federal government starting in the 1930s to separate Indigenous people from the rest of the Canadian population to stop the spread of tuberculosis (TB).
Tens of thousands of First Nations, Inuit and Métis patients, including children, were admitted to the overcrowded, poorly staffed and unsanitary institutions. Survivors allege they faced physical and sexual abuse from hospital staff, along with forcible confinement to beds without a medical reason. Some say they were also the subject of medical experiments.
The deal announced Thursday aims to resolve a $1.1-billion class-action lawsuit on behalf of former patients from the decades-long segregated health-care system rife with widespread mistreatment and abuse by providing an uncapped amount of compensation.
"It's a meaningful day," said Ann Hardy, representative plaintiff.
Hardy was admitted to the federally run Charles Camsell Indian Hospital in Edmonton from January to May 1969.
"I was admitted because I had TB and I 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 from January 1936 until December 1981, excluding sanatoriums.
5 years of negotiations
Under the proposal, individual compensation for survivors would vary depending on the level of verbal, physical and/or sexual abuse suffered.
Some of the allegations from patients include: being beaten with rods and sticks, isolated in hospital rooms for prolonged periods of time, deprived of food and water and even forced to eat their own vomit.
Compensation for immediate family members would also be made available.
A foundation would be created to administer an additional $150-million healing fund for survivors to access money for the revitalization of their Indigenous languages, education and wellness.
The foundation would also manage a separate $235.5-million research and commemoration fund to preserve the history of the institutions and to help local burial sites associated with them.
"I wish this chapter of our history had never happened," Crown-Indigenous Relations Minister Gary Anandasangaree said at the announcement.
"But it did. And so, we have a responsibility not just to acknowledge it, but to act."
The agreement comes after five years of negotiations between the federal government and lawyers for the lawsuit, Ann Cecile Hardy v. Attorney General of Canada, which was filed in 2018 and certified in 2020. An agreement-in-principle was reached in December 2024.
The deal also covers three similar proposed class actions that were filed afterwards and dealt with collectively under Hardy, including: 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).
In addition to compensation, survivors could collectively access $150 million from Indigenous Services Canada for mental health and legal support through the claims process. The money would also cover the administrative cost of the settlement agreement by independent third parties.
The Federal Court will decide whether to approve the proposed settlement agreement during hearings scheduled for June 10 and 11. Survivors are encouraged to provide feedback in advance.
Mental health counselling and crisis support also available 24 hours a day, seven days a week through the Hope for Wellness hotline at 1-855-242-3310 or by online chat.
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