Paterson became the first Scottish player to reach 100 caps in the Welsh capital, but lasted only 30 minutes before he left the field after an earlier collision.
He was one of two Scottish players who were retained in hospital overnight and Scotland's team doctor, James Robson, said the Edinburgh star could be out of action for up almost the whole of the remainder of the season after the damage he sustained to his right kidney.
Although not requiring surgery at this stage, Paterson will remain in the University Hospital, Cardiff for another night.
"In effect he has a massive bruise in the middle of his kidney but that will gradually repair itself and the medical team are also pleased with his progress," said Robson.
Losing Paterson will be a massive blow to Edinburgh's chances of challenging for a place in the inaugural Magners League Grand Final at the end of May. Currently in third place in the regular league table behind Glasgow Warriors and the Ospreys, the Scottish capital club have seven games left to play.
They travel to Munster this weekend and then have to receive the Ospreys, Scarlets and Ulster at Murrafield. They also have to travel to Connacht, the Dragons and, on the final round of league matches on the first weekend in May, Leinster.
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