The health department failed to act after the rape of a baby girl at Royal Darwin Hospital, says a report which found security cameras were installed in the kitchen before the paediatric ward.
Health commissioner and report author Carolyn Richards said compensation should also be provided to the child and her parents.
"It is shameful that they have done nothing until August this year when a camera was installed," she told ABC radio.
She said this had happened only because of her investigation and it took place after a camera was installed in one of the hospital's kitchens to stop the pilfering of food.
Her findings prompted Northern Territory Health Minister Chris Burns to put his department "on notice".
He said he had lost "a hell of a lot of sleep" since receiving the investigation report, which found RDH had been slow to implement security measures since the rape of the child on March 31, 2006.
"There is to be no more foot-dragging in relation to implementation of the recommendations within this report," he said during question time in Parliament today, the last time it sits this year.
"Anyone who stands in the way, anyone who drags their feet, anyone who tries to delay for whatever reason or who isn't committed to it they can be out the door."
A security camera and swipe card system are now in place but Dr Burns conceded the measures did not go far enough.
He announced that $1 million would be available for further upgrades.
"I am angry and deeply concerned by the department's response," he said.
"I want to apologise to the family who are the subject of this report...
"It's clear the department has demonstrated a lack of commitment to fully address the security issues on the children's ward."
But the Country Liberals called Dr Burns "either a coward or a liar" and accused him of being asleep on the job.
"I can't begin to express my dismay and astonishment about what has happened in this case," Opposition MP John Elferink said.
"This is just another example of a minister whose eye is so completely and utterly been taken off the ball."
Opposition health spokesman Matt Conlan said the Government had to accept blame for the delays.
"Minister, how can you with a straight face deny personal responsibility for this astonishing failure to responsibly look after the Royal Darwin Hospital?" he said.
"Minister you are either a coward or a liar."
RDH general manager Len Notarus said he "would have preferred" to have CCTV cameras installed "a lot earlier".
But he denied the department had been dragging its feet.
"We have done our best over the last year or so to get as many things into place ...
"I can only apologise for the delays that have occurred...
"Absolutely, as the minister said, it should have moved more quickly."
Chief Executive of the Health Department Dr David Ashbridge said he shared the minister's "anger and concern".
