Yes and no, as stated below, the statute of limitations is 2 years, BUT it is tolled during medical treatment. So I would suggest your daughter get another attorney that specializes in Medical Malpractice, this will also involve not only the hospital but the physician. If the statute had run and there wasn't this exception she could also sue her attorney for malpractice for not filing notice to toll the statute.
http://www.medical-malpractice.us.com/virginia.html
"VIRGINIA MEDICAL MALPRACTICE ATTORNEY
Limitation issues can be complex legal matters and it is essential to take advice from an experienced Virginia medical malpractice attorney.
All medical malpractice actions for injury (as opposed to death) must be brought within two years from the date the cause of action accrued, which is the date of injury. The Supreme Court holds that continuing treatment for the same conditions tolls the statute until treatment ends. In foreign object cases and cases of fraud or concealment, the statute is extended to one year from the date the object or injury is discovered or reasonably should have been discovered, but this extension is subject to a ten-year limit from the time the cause of action accrued. Wrongful death actions must be brought within two years of death.
A parent's action for medical expenses caused by injury to a minor must be brought within five years. A minor's medical malpractice action for injury or death must be commenced within two years from the date of the last act of negligence, unless the child is less than eight years of age, in which case the action must be brought by the child's tenth birthday. Incapacity tolls the running of the statute of limitations.
If you are the innocent victim of a medical mistake then you may be able to recover compensation. For free advice without obligation from an accredited specialist attorney just complete the Virginia medical malpractice attorney contact form and a member of The Association Of Trial Lawyers Of America will telephone you immediately to discuss your compensation claim without further obligation."