Dunedin publican James Adair Lawrie Richmond, who died on May 10, 1881, directed in his will that income from part of his estate be given to patients in hospital on Christmas Day.
Originally containing a shilling, the gift now amounts to $10.
On Christmas Eve, Health New Zealand Southern planned care district manager Nigel Copson and his daughters Liberty and Natalie Copson went from floor to floor in the hospital handing out the shillings to every patient in the building.
Mr Copson said the original intention was to give patients enough money to buy a glass of beer but nowadays people used the money to buy all sorts of things.
"We usually suggest a coffee and a muffin, rather than a beer," Mr Copson said.
"It’s a really enjoyable part of my role to be able to do something that brings a smile to people’s faces on Christmas."
He said he and his daughters had been involved in the tradition for the past few years.
Natalie could remember being on the receiving end of a shilling when she was in hospital at age 5.
She probably spent it on a packet of lollies, she said.
It was a full-circle moment for her to be handing the shillings out now.
Mr Copson said the donations were made possible through the Healthcare Otago Charitable Trust. Typically, around 200-250 patients were in the hospital each Christmas.
One patient, Barry Baxter, was in hospital recovering from right bowel removal surgery on Tuesday.
Mr Baxter had heard about the Richmond Shilling tradition because he was in the ambulance service and was glad he could be a part of it.
He was not planning on spending the shilling but rather displaying it on a mantelpiece later.
