There's a statutory $250,000 "noneconomic damages" cap in California for medical malpractice. The hospital would gladly pay up just to make it go away. The family's attorney was one of the big names behind a ballot proposition that would have increased the limit to a million. I listen to local radio, and I want to puke every time I hear that attorney's commercial.
Legal awards are never open-ended, so it's always a single lump sum payout. I heard of a case where a patient at Children's Hospital Oakland came out of surgery and was in a medically verifiable persistent vegetative state. The hospital settled for about $4 million, which is supposed to pay for the medical costs for life.