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Special administrators will be running the Mid Staffordshire NHS Foundation Trust from today.
It is the first foundation trust in the country to be put into administration.
It means that regulators will draw up a "sustainable" action plan for its future.
Hundreds of patients died needlessly at Stafford Hospital when financial targets were put before patient care.
The Francis Report highlighted the "appalling and unnecessary suffering of hundreds of people" between 2005 and 2009.
Dr. Hugo Mascie Taylor and Alan Bloom, from accountancy firm Ernst and Young, will head the administrators.
The consultation will last 45 days followed by a 10 week review period, before any changes can be implemented.
Health regulator Monitor has appointed administrators to look at how to make services at Stafford Hospital 'sustainable'.
The board and the governor will be suspended and the administrators will take over the running of the hospital.
They will have 45 days to produce proposals which will then be open to public consultation.
Scandal-hit Mid Staffordshire NHS Foundation Trust is to be put into administration, health regulator Monitor announced.
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What does the decision to appoint trust special administrators to run Mid Staffordshire NHS Foundation Trust mean?
The Health Secretary's response came after failings at Mid Staffordshire NHS Trust, which highlighted the suffering of hundreds of people.