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.
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.
The Health Secretary, Jeremy Hunt, has today outlined new plans for NHS following the Stafford scadal