In order to meet the multi-party compensation claim by families of people who live at Winterbourne View public funding has received approval.
In June, after the BBC Panorama programme revealed adult patients with severe learning difficulties being physically and mentally abused, the private hospital in Hambrook was closed.
The revelations led to public outcry and sparked numerous policy reviews and independent investigations.
Hospital owners Castlebeck apologized unreservedly for the abuse and 13 staff were arrested and remain on bail.
The relatives were told public funding would be used to set up the logistics of a multi-party claim at a meeting with specialist lawyers Foot Anstey in Bristol.