Stafford Hospital will keep its current part-time accident and emergency department but will lose other services in a major shake-up by health administrators.
Trust Special Administrators, which was appointed by the Department of Health in April, said "there is no alternative but to make significant change" at Stafford and neighbouring Cannock Chase Hospital in their report outlining the proposals.
Thousands of people have taken to the streets in Stafford to protest over threatened cutbacks to acute services at Stafford Hospital. Protesters say they fear the cuts will lead to losses of life and will put other local hospitals under strain.
Protesters filled the Market Square and many surrounding streets, they marched to the hospital approximately one mile away.
For years Stafford has faced criticism over poor standards of care, which has been blamed for hundreds of patient deaths.
But marchers say the hospital has greatly improved and the threat of acute services being moved elsewhere will leave people in the town in danger.
The hospital is currently in special administration the administrators say they are aware of the strength of feeling locally and are setting up public meetings to hear people's views.
The mother of a baby who had a dummy taped to its mouth under the supervision of staff at Stafford Hospital, says she wasn't initially informed.
Sarah Fellows, the mother of baby Mason – seen below spitting his dummy out – was 'devastated' when she found out what happened three days later.
Last Friday, Mid Staffordshire NHS Foundation Trust apologised for the "exceptional" incident and said a member of staff from Stafford Hospital has been suspended, and that the police are investigating.
The Trust is currently at the centre of a public inquiry into serious failings of care between January 2005 and March 2009.