The trust that runs scandal-hit Stafford Hospital is being put into administration, health regulator Monitor has announced.
Mid Staffordshire NHS Foundation Trust will be run by two specially appointed administrators after it was decided that the trust was "neither clinically nor financially sustainable in its current form".
Dr Hugo Mascie-Taylor and Alan Bloom of Ernst and Young will take over the running of the trust tomorrow.
The trust was at the centre of a public inquiry into the "disaster" at Stafford Hospital where hundreds of patients may have died needlessly after they were "routinely neglected".
It will become the first NHS foundation trust to face administration.
Monitor said the special administrators would be given 45 working days to design a way of providing services to patients in the area "that is sustainable in the long term".
Their plan will be subject to a public consultation and services at the hospitals in Stafford and Cannock will continue to run as normal until a final decision is reached.
Monitor's chief executive David Bennett, who announced the regulator's decision at a news conference at Stafford Hospital, said: "It is important that people in Mid Staffordshire know that they can still access services as usual at Stafford and Cannock hospitals while the trust special administration process is ongoing.
"We have taken this decision to make sure that patients in the Mid Staffordshire area have the services they need in the future.
"It is now the role of the trust special administrators to work with the local community to decide the best way of delivering these services."
The Francis Report highlighted the "appalling and unnecessary suffering of hundreds of people" between 2005 and 2009.
Three weeks after the public inquiry report was published, Monitor said it was consulting about the prospective appointment of trust special administrators.
An independent review into the trust, conducted on behalf of the regulator, concluded that the organisation was neither clinically nor financially sustainable in its current form.
Finances at the trust, which is deemed to be one of the smallest in the country, have a bleak outlook. Last year the Department of Health was forced to give the trust a £20m boost to maintain services for patients.
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