The morning after the incident she woke up in a state of disorientation and said she had been sexually assaulted.
The nurse was charged with indecent assault and sexual violation and was put on trial before a jury, but the charges were dismissed during the trial.
The judge found guilty verdicts based on whether or not the woman had the ability to consent were unsafe verdicts. The decision acknowledged sexual activity had taken place, and no finding was made on consent.
During today's Tribunal hearing, Director of Proceedings Kerrin Eckersley said the nurse had "numerous opportunities to remove himself" from the situation but chose not to leave.
She laid out six occasions where the nurse had a chance to leave, and said his claim that he instead masturbated on the patient because there was no other way to "escape" lacked credibility.
"[His] final explanation for why he could not leave and seek help was because he was scared of being accused of sexual assault if he went and told anybody. [He] has given no evidence to explain why he concluded he was at such risk."
The nurse accepted he had opportunities to leave, but "failed to do so and has suggested that he had 'no choice' but to masturbate over his patient's back".
"[He] seeks to shift blame for what occurred onto his patient by claiming that she was the instigator of the sexual activity."
Eckersley said whether or not the patient initiated it, it was irrelevant to the Tribunal, as the nurse had still committed misconduct.
He had taken advantage of a situation and "grossly breached" the relationship between patient and nurse instead of following his training, she said.
The nurse has admitted masturbating on the patient, and touching her breast and genitals, but denies hugging her and argues he removed his hands immediately after touching her.
He also denies violating the woman.
Eckersley said there were inconsistencies in the nurse's claims compared to what he told police soon after the incident.
She said the patient's vulnerability was "particularly acute", given her history of alcohol overuse disorder, serious drug dependency, and her personal stressors.
During her admission she suffered, at time, severe withdrawal symptoms and was medicated with high doses of diazepam.
The nurse was responsible for administering that diazepam and at times withholding it when he felt it clinically necessary.
"The power imbalance in any patient nurse relationship is significant, however, for an addict in this situation it could not have been more palpable."
An aggravating factor was that the incident happened on a night shift in a hospital room where three other patients were sleeping, she said.
In her closing submissions, defence counsel Margaret Barnett Davidson said the nurse accepted his patient was vulnerable and that he failed to respond to her behaviour appropriately.
The Tribunal is expected to make a decision on name suppression and the nurse's penalty tomorrow.