The California Department of Public Health cited Cedars-Sinai Medical Center and 10 other hospitals for violations that caused "or was likely to cause, serious injury or death to patients."
Cedars spokesman Richard Elbaum said the hospital has cooperated with state investigators and intends to pay the fine.
The hospital has since apologized to the patients' families and said it has taken steps to provide more training to staff and review all policies and procedures involving high-risk medications.
The preventable error occurred because a pharmacy technician stored the higher heparin doses in the wrong place and a nurse who administered the drug to the babies failed to verify the amount.
After the mix-up, Quaid and his wife, Kimberly, sued Heparin maker Baxter Healthcare Corp., accusing the company of negligence in packaging different doses of the product in similar vials with blue backgrounds.