Shrestha died due to excessive bleeding while undergoing an operation for delivery at the hospital on Tuesday.[break]
The family had blamed the doctors of negligence and had been demanding compensation.
The agreement was reached after a long negotiation among the hospital administration, local intellectuals and the family of the victim.
Parashu Ram Adhikari, director at the hospital, said that they are ready to provide the amount for the education of the newborn of late Bimala Shrestha. The family members and relatives of the victim had locked the hospital for some days calling for compensation.
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