United Lincolnshire Hospitals NHS Trust has been fined following the death of 53-year-old man at Pilgrim Hospital in Boston.
Lincoln Crown Court heard that the patient at the hospital, died in April 2012 from internal injuries after falling onto an exposed metal post on the standing aid hoist that staff were using to support him.
The knee pad on the standing aid hoist had been incorrectly removed leaving the exposed metal post that caused the fatal injuries when he collapsed after standing up.
HSE investigation found the Trust did not have systems for training and monitoring how staff used the standing aid hoist and unsafe practices had developed.
It was fined £1 million and ordered to repay £160,000 in costs.
The trust has also been ordered to pay £3800 to the family to cover the costs of the funeral.