I’ve been told in a similar case that the low amount was a legal placeholder that will be jacked sky high later.
It’s interesting to claim that the hospital caused them extra anguish by covering up what happened. It would hardly have reduced thier anguish to hand them the remains in parts and tell them all about what happened in graphic detail.
Whoever was attempting to deliver the baby might or might not have been negligent at all. This sounds like a very unusual circumstance — way beyond my limited medical knowledge and the lack of objective facts to parse.
Here's your baby (some assembly required)...
It’s the lying about it and covering it up that is in question.