The hosts of the show, Mel Greig, 30, and Michael Christian, 25, who were responsible for the call, will not return to the airwaves until further notice, the statement said. The network also ordered a company-wide suspension of prank calls.
Southern Cross Austereo said it tried to contact the hospital several times before airing the segment. But the hospital said there were no calls.
"Following the hoax call, the radio station did not speak to anyone in hospital senior management or anyone at the company that handles our media enquiries," a spokesperson for the hospital told ABC News.
The Australian radio station has come under fire for its antics gone wrong before.
The Australian Communications and Media Authority launched an investigation into 2Day FM in July 2009 after the station broadcast a lie-detector test with a mother and a daughter regarding the girl's sexual activity, despite the girl's protests. In the segment, which was part of the "Kyle and Jackie O Show," the 14-year-old girl revealed to her mother that she had been raped when she was 12, according to the Sydney Morning Herald.
After the revelation, host Kyle Sandilands said, "Right ... is that the only experience you've had?"
The segment ended with an apology from host Jackie O'Neil'.
The rape allegation was investigated by police but later called off by the teenager. As a result of the investigation, however, the "Kyle and Jackie O Show" was suspended for three weeks.
Sandilands came under fire later that year after he said actress Magda Szubanski, who was a spokeswoman for weight-loss company Jenny Craig at the time, could lose even more weight if she went to a concentration camp, the Australian reported. Szubanski is of Polish descent. Sandilands quickly apologized for the comments.
The station was also investigated in April 2009 for a segment called "Heartless Hotline" in which a mother of five children, four of whom were disabled, called in to win tickets to the Sydney Royal Easter Show. The woman was offered seven tickets unless another listener called to claim them within 30 seconds. When another listener called in, the mother of five had to argue with hosts in order to keep the tickets.
Also that year, the station staged a prank in which it raised funds for the parents of a disabled child. The station claimed to have raised $150,000 for the family but when the parents contacted 2Day FM to claim the money, the station gave them the names of listeners who had pledged donations. The parents were only able to collect $50,000.
ABC Australia's program "Media Watch" recalled one of the "Kyle and Jackie O Show" pranks in which it told a Cambodian-Australian woman, Saveth, it would bring her niece, Dana, to Australia. But the day before the station was to fly Dana to the country, it told Saveth that it would put Dana behind one of three doors when she arrived and if Saveth didn't choose the right door, Dana would be flown home. When Saveth picked the wrong door, the women pleaded and cried until the station finally told them Dana could stay.