Gas company denies role in hospital error

A blame game has erupted over the fatal oxygen mix-up at a western Sydney hospital that killed a newborn and left another with suspected brain damage.

The company in charge of installing gas pipes in NSW hospitals has been dumped and a hospital engineer stood down after the babies were mistakenly given nitrous oxide instead of oxygen at Bankstown-Lidcombe Hospital in June and July.

A report released on Tuesday found the affected pipe was installed and certified by industrial gas contractor BOC Limited in July 2015 after an oxygen bottle ran out while a baby was being resuscitated.

However BOC says the original installation of the pipes was not conducted by its contractors.

"It was found during an inspection by police, hospital staff and BOC that both the medical oxygen and medical nitrous oxide pipelines were incorrectly labelled prior to BOC's work being undertaken at the hospital in July 2015," the company said.

The hospital engineer who was stood down was involved in the commissioning of the gas outlets.

The report has not yet identified whether any other hospital managers or staff contributed to the tragedy, and more statements are being collected.

The bungle was discovered two weeks ago after a paediatrician raised concerns about baby John Ghanem's death on July 13, with the families of both babies notified last weekend.

A full report is due by August 25.