Have your wife contact the state nurses board, requesting an appointment with a legal officer. Advise her to provide a FULL written account of ALL the allegations, incidents, events, which she has been associated with in relation to this matter/hospital. Seek the nurses board position on this matter, obtain their advice. And.... Document... document... document!! Remember....
"If it isn't written, it didn't happen!". ALWAYS DOCUMENT!
Also, as Gwenith suggests, contact the nurses union, (usually the ANF, Australian Nursing Federation), in your state. Request an appointment with the legal officer there also. DON'T just discuss ANY of it over a phone call! Request an actual face to face appointment. Take a support person along....ALWAYS!
And, again..... DOCUMENT...DOCUMENT...DOCUMENT!
If your wife gains no satisfaction from the suggested avenues, or the hospital itself, write to your state MP if necessary, and/or the Department of Human Resorces in your state government, requesting this matter be dealt with in an appropriate fashion. Challenge and question the hospital's policy on this matter. Be sure to also provide a suggestion for a solution to anything you are bringing into question.
When the "Standover tacticians/bullies", within the nursing workforce are allowed into positions of power, they gain free reign to perpetrate their evil onto anyone they so choose. And, sadly, are often never held accountable. They position themselves into employing strategies designed to intimidate, humiliate, divide and conquer. The person/s, at their "mercy" need to be strong, educate themself, (knowledge is power!), and be preapred to fight the hard fight.
You can always seek the advice of an independent solicitor & see how far you can take this matter. You do not have to just accept what they are saying!