The agreement with Hollywood Presbyterian resolves the lawsuit filed last year by the city attorney's office.
"We have now done everything we told the community last year we would do in response to this incident," Jeff Nelson, Hollywood Presbyterian chief executive, said in a statement. "From the first day, we promised to take action to review our policies, procedures and services for homeless patients and improve them where needed."
As part of the settlement, Hollywood Presbyterian agreed to a series of requirements aimed at preventing future patient dumping and allowed Lourdes Baird, a former U.S. attorney for Los Angeles and retired U.S. District Court judge, to oversee the hospital chain's compliance. Baird, who is already overseeing the Kaiser chain, will report to a Superior Court judge in L.A.
Baird is to monitor the hospital for five years, but the agreement states that if certain standards are met, monitoring can end after two years. The hospital will also pay a civil penalty of $10,000 and cover $50,000 in city attorney investigation costs.
Under the new rules, physicians, nurses and social workers are required to assess and document homeless patients' mental status and refer them for cognitive and neurological exams when needed.
Empire Enterprises, whose driver was accused of leaving Olvera, was also a defendant in the suit. The van company agreed to end such actions and pay a $10,000 civil penalty, city attorney's officials said.
Olvera and the hospital have also reached a confidential financial settlement on his personal litigation, attorneys said. The settlement "allows for the setting up of a trust to take care of Mr. Olvera," said Steven Archer, one of his lawyers.
Nelson, the hospital's chief executive, said Olvera's treatment was unacceptable.
"From the first day, we have said the outcome of this case was not in line with the hospital's policies and procedures and that we would take whatever actions were necessary to ensure to the extent possible that nothing of the sort happens again," he said in the statement.
Jeff Isaacs, chief of criminal prosecutions and enforcement for the city attorney, said his office still has a civil suit pending against Arcadia's Methodist Hospital, alleging patient dumping.
Over the last two years, his office has opened investigations into more than 50 cases of alleged dumping. The latest allegation involved a hospital in Costa Mesa accused of dumping a patient on skid row earlier this year.
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richard.winton@latimes.com
