A review by the Crown showed there was insufficient evidence to proceed further.
The charge against Hawke's Bay DHB was withdrawn in January after WorkSafe accepted an "Enforceable Undertaking", meaning the DHB would have to carry out activities and obligations to improve health and safety for its workers and the wider sector.
WorkSafe's head of specialist interventions Simon Humphries said the DHB had proposed a series of commitments within its application that would help ensure the incident would not happen again, not just in Hawke's Bay but New Zealand wide.
"The standard for acceptance is a high one. We need to be confident that the proposals offered support our key objectives, and provide sufficient benefit to cease the prosecution process.
"In this instance the DHB responded quickly with remedial action following the incident. An immediate ban was placed on the use of the lifter unless a patient was on a stretcher," Humphries said.
"A number of initiatives were also created and prioritised to ensure a similar incident did not occur again including, risk management procedures, new flight nurse handbooks and training in using the lifter for all staff.
"The DHB's application for an EU was well considered. It was targeted towards the circumstances that led to the incident and it will provide real benefit to workers, industry and community."
Hawke's Bay DHB's executive director people and quality, Kate Coley, said the district health board was committed to ensuring the safety of its patients and staff and had already made significant progress in addressing the commitments made.
Skyline Aviation pleaded not guilty to the charge last August and WorkSafe later withdrew the charge just last week.
Skyline Aviation managing director Mike Toogood said that it had been confident it had complied with its health and safety obligations, which is why it had defended the charge.
"We're very pleased that WorkSafe has withdrawn the charge."
