Lorna Exton, 93, was injured in an October 2021 fall at Benalla's Morrie Evans nursing home in Victoria's northeast.
She fell backwards when the back of her reclining chair detached as a employee tried to move it following an outdoor family visit.
Mrs Exton developed a chest infection in the following days and died a week after the incident.
The 30-bed public aged care facility is run by Benalla Health.
A WorkSafe investigation found the health provider failed to maintain a system to ensure chairs used for transporting residents were regularly assessed for safe functionality, scheduled for preventative maintenance and tagged accordingly.
Benalla Health pleaded guilty to a single charge and was convicted and fined $230,000 in the County Court on Tuesday.
A simple assessment system for its recliner chairs would have been enough to prevent the incident, WorkSafe's Barb Hill said.
"When aged care residents are already vulnerable to injury and illness, every step must be taken to ensure their safety is a top priority," she said.
"This is a reminder that healthcare providers have a duty to keep their workers, clients and patients safe and there are no excuses when equipment fails and a vulnerable person is injured."
A public death notice for Mrs Exton said she was married to husband Bernie for 70 years and had 17 grandchildren and 20 great grandchildren.
Victoria's Department of Health said it would continue to work closely with Benalla Health "in supporting staff to deliver safe patient care now and into the future".
"Any death is a tragedy and our thoughts are with the family and loved ones of Mrs Lorna Exton," a spokesperson said.
Benalla Health extended condolences to Mrs Exton's family, describing it as a "deeply sad incident for everyone involved".
"Since this incident, we have made significant improvements to our maintenance systems and safety protocols to better protect residents and support staff in delivering safe care," a spokesperson said.
"We respect the court's decision and have taken the outcome on board. We remain focused on moving forward with a renewed commitment to safety and care."Â
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