A woman's family heard her dying on the other side of a hospital curtain but were prevented by medical staff from being with her until 45 minutes after she died, a report has found.
Linda Morgan, 60, was admitted to the QE Hospital in Birmingham, where her family were kept outside her cubicle for five hours with no explanation.
The Health Ombudsman upheld a complaint from Mrs Morgan's family.
The trust which runs the hospital said it was not commenting on the case.
The Parliamentary and Health Service Ombudsman's report found there were failings in staff communication and the University Hospitals Birmingham NHS Foundation Trust "failed to fully acknowledge and remedy the distress its staff caused".
The report, which refers to Mrs Morgan as "Ms G", also found the trust's complaint handling "fell short of expected standards".
When Mrs Morgan's son Ian Cartwright complained, the trust took five months to respond and did not organise a meeting with the family until the ombudsman intervened.
Mr Cartwright said he was told medical staff were going to insert a tube into his mother's trachea to help her breathe, but only found out about her cardiac arrests when he "heard a mechanical voice say 'charging'".
"Every time we edged forward to be by her, a nurse kept moving us back."
Nursing staff were also found to have mocked Mrs Morgan's skin.
"From the other side of the curtain we heard what was going on," said Mr Cartwright.
"We heard one of the nurses say 'has she got scabies?' and then laugh.
My mum suffered from eczema so that was really upsetting - Mum was really dignified and would have been horrified."
The trust apologised and paid Mrs Morgan's family £500 "to recognise the distress caused by its staff's poor communication", and £250 to "acknowledge the frustration its poor complaint handling caused".
If Mrs Morgan was white, and the laughing nurse wasn't, they should have played the race card, and got at least £5k out of it