John Biggadike died when he fell while in the hoist and was impaled on a metal post at Boston Pilgrim Hospital.
At Lincoln Crown Court, the prosecution alleged hospital staff were not adequately trained and had wrongly removed a knee support pad.
United Lincolnshire Hospitals NHS Trust denies breaching health and safety regulations.
Mr Biggadike was receiving physiotherapy at the hospital ahead of being discharged in April 2012 when the incident happened.
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The defence suggest Mr Biggadike's death was not caused by failings in training, but by a failure to act after a previous "serious incident" with a hoist at a hospital in Leicester in 2007.
Jurors heard evidence from Sarah Vincent, representing the Medicines and Healthcare products Regulatory Agency (MHRA).
Mrs Vincent admitted the Leicester incident was "serious" but conceded the subsequent MHRA investigation was limited to questioning the hoist manufacturer's own investigation and making sure the hospital trust had instructions for using the hoist.
United Lincolnshire Hospitals NHS Trust denies breach of health and safety regulations by exposing non-employees to risk by failing to train, supervise and monitor its employees in relation to the safe use of the lifting hoist on dates between July 2001 and April 2012.
The trial continues.

The Australian Open semi-finalist joins Heather Watson, Victoria Azarenka and Caroline Wozniacki in the draw.
"I had a good run at the tournament last year, which was the start of a great summer for me," Konta said.
"It's a really strong field which is great for the tournament and I'm hoping for more success in Nottingham."
Croatian teenager Ana Konjuh will return to the Nottingham Tennis Centre to defend her title and British number three Naomi Broady is also set to play in the tournament, which will take place from 4-12 June.
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A team statement said Henao, 28, had been contacted by cycling's governing body and an anti-doping agency about data between August 2011 and June 2015.
The Colombian said he was "beyond disappointed", having missed three months in 2014 over similar concerns.
"I know who I am, how hard I have worked and the sacrifices I have made to be where I am today," he added.
Henao was voluntarily withdrawn by Team Sky in 2014 while they carried out research into the biological characteristics of riders who live and train at high altitude.
They said the results revealed nothing to raise suspicions of wrongdoing.
Team Sky stressed Henao had not failed a doping test and had been withdrawn because of the "very obvious distraction to him".
"We continue to support Sergio and remain confident in the independent scientific research which was undertaken," the team added.
"It is our hope that this can be looked at and resolved quickly by all the relevant authorities so Sergio can start racing again soon."
A specialist climber, Henao signed with Team Sky in 2012 and finished in the top 10 in his first Grand Tour, the 2012 Giro d'Italia.
Instructions for a hoist involved in the death of a hospital patient were not comprehensive, a court has heard.
[NEXT_CONCEPT]
British number one Johanna Konta has become the latest player to confirm her entry to the pre-Wimbledon Aegon Open in Nottingham in June.
[NEXT_CONCEPT]
Team Sky have withdrawn Sergio Henao from riding after concerns about his biological passport data resurfaced.