Some services at the Friarage Hospital in Northallerton will be downgraded. A referral for a review of the decision has been rejected.
Campaigners from the Save the Friarage group say they will continue to fight the proposals to downgrade children's and maternity services.
Health experts have confirmed their intention to reduce children's and maternity services at The Friarage Hospital in Northallerton.
Campaigners trying to prevent services being scaled back at a North Yorkshire hospital say they've had to abandon plans to take legal action.
Leaders at Richmondshire Council say they've been advised by legal experts not to challenge a decision - which will reduce maternity and children's services at the Friarage hospital in Northallerton.
Doctors who are part of The Hambleton, Richmondshire and Whitby Clinical Commissioning Group (CCG) have said the plans will make care at the hospital much safer and more sustainable.
Campaigners had fought against the changes for three years.
A hospital trust has apologised to the family of a seven-year-old boy who has received a £12m compensation payout. Toby Hart will need 24-hour care for the rest of his life after staff at the Friarage Hospital in Northallerton failed to spot he had an abnormal heartbeat when he was born.
South Tees NHS Foundation Trust said:
“We are sorry that the care afforded to Mrs Hart and to Toby fell below an acceptable standard and that Toby suffered very substantial injuries as a result.
"We have apologised for the failings and that apology is repeated together with every good wish to Toby and his family.
The trust acknowledges that no amount of money can compensate adequately for the damage suffered but it is hoped at least that the agreed sum will give some financial security and provide for Toby's needs."
A High Court judge has approved a £12m compensation agreement for a seven-year-old boy left severely disabled after an abnormal heartbeat was not 'acted upon' during his birth, lawyers said.
Toby Hart, of Bedale, North Yorkshire, will need 24-hour care for the rest of his life.
Mr and Mrs Hart later said they hoped that the NHS would invest in better midwife training.
Lawyers said a settlement had been agreed with the South Tees Hospitals NHS Foundation Trust.
The hospital has apologised to the Hart family.
Controversial pans to downgrade services at the Friarage Hospital in Northallerton are to go ahead.
Jeremy Hunt today said that he agreed with the findings of an Independent Reconfiguration Panel (IRP) after the decision to change services was referred by North Yorkshire County Council's Scrutiny of Health Committee.
Children's and maternity services at the site will now be downgraded.
Councillor Jim Clark, chair of the North Yorkshire County Council Scrutiny of Health Committee said: "We have gone as far as we can so we now need to accept this decision and look forward.
"We will be looking to make sure the transition to a short stay paediatric assessment unit and a midwife led maternity unit at the Friarage Hospital...are implemented as smoothly and with as little disruption to patients as possible."
Vicky Pleydell, Chief Clinical Officer at Hambleton, Richmondshire & Whitby Clinical Commissioning Group, welcomed the decision:
"We hope that people who have had concerns about these plans will be reassured by the Secretary of State's decision based on independent clinical advice, and are now confident that this is absolutely the right thing to do."
Lord Ribeiro, Chairman of the IRP, said: "_The quality of patient care has been our primary concern and after considering the matter carefully we believe these changes will ensure the best care for local women and children.
"We have taken into account the clinical evidence about the current and future safety and sustainability of maternity services and the need to make best use of scarce resources, and believe these proposals are the most effective way of meeting the challenges currently facing the Friarage Hospital."
A decision to downgrade services at the Friarage Hospital in North Yorkshire has been sent to the Secretary of State for review.
It was decided in February 2014 that children's and maternity services at the Friarage in Northallerton would be scaled back. It was claimed that treatment at larger hospitals in Middlesbrough, Leeds or Darlington would be safer.
However, thousands of families have campaigned against the move, saying it would be risky for patients to travel further.
William Hague, the Conservative MP for the area, has asked for the decision to be reconsidered.
Now it has been decided it will be sent to the Health Secretary, Jeremy Hunt, requesting a full review by the Independent Reconfiguration Panel.
A public meeting is being held this morning at the Golden Lion Hotel in Northallerton, to discuss the future of children's and maternity services at the Friarage Hospital. It was decided last week that services will be scaled back.
Campaigners, councillors and members of the Clinical Commissioning Group, which made the decision, will take part.
A public meeting will be held this morning to discuss how maternity care will operate at The Friarage Hospital in Northallerton.
It follows a decision last week by the hospital to scale back paediatric and maternity services.
The existing service, run by consultants, will become midwife-led.
The changes will start in October.
Today's meeting is being held at The George Hotel in Northallerton and has been organised by NHS Hambleton, Richmondshire and Whitby Clinical Commissioning Group.
Families in North Yorkshire say they're disappointed after losing their fight to keep services at the Friarage Hospital.
Paediatric and maternity services there will be scaled back.
The group of doctors who've made the decision say it's safer for patients to get the care at other hospitals.
Richmond MP William Hague says he is disappointed plans will now be put forward to scale back paediatric and maternity services at the Friarage Hospital.
Mr Hague said: “While there are legitimate clinical concerns faced by the Friarage, these are challenges to be overcome and not surrendered to.
"While I am disappointed by this recommendation, I welcome the news that GPs have insisted on a seven day model of paediatric care, rather than the five that was previously recommended.
"If these recommendations take effect it is vital that we have clear and firm assurances from other local providers, particularly Darlington Hospital, that they have the capacity to handle safely and effectively any extra demand as a result of these changes.
"I will be following closely the next meeting of North Yorkshire County Council’s Scrutiny of Health Committee and working with them if they decide to refer this decision to the IndependentReconfiguration Panel.”