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.
– Christina McAnea, UNISON head of Health
Today’s news is deeply worrying for patients, staff and local people. More than 15,000 local residents have already signed a petition calling for the hospital to keep its acute services. It is vital that these views are listened to and acted upon at all stages of the consultation process.
Hospital staff and managers have put many hours of hard work into trying to turn this hospital around after the tragic lapses of care that occurred.
There is money available to bail out banks, there should be money available to bail out vital local services such as hospitals. The government must step in.
– Lyn Hill-Tout, chief executive Mid Staffordshire NHS Foundation Trust
Our staff continue to provide care for our patients at both Stafford and Cannock Chase hospitals, and are very proud to continue to put patients first.
We would like to reassure local people and GPs that we are continuing to provide all our usual services at both hospitals and patients should turn up as usual for any appointments they have.
We would like to thank our local community for their continued support, which means a great deal to staff.
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.