The South Tees NHS Foundation Trust has agreed to address failings in infection control, finances and leadership.
They came to light after an investigation by Monitor, the NHS health regulator.
In a statement, the Trust said it was already working hard to address concerns.
“We welcome external scrutiny of our activities and so are happy to accept any extra support that Monitor can offer.
"The trust has always had a strong focus on providing high quality, safe services – something that has been recognised locally, regionally and nationally – and while we are facing some tough challenges, not least our financial position, our commitment to providing excellent services and care for our patients will not change."
The health service regulator has said the South Tees Hospitals NHS Foundation Trust must fix financial and infection control failings quickly to secure quality patient services.
The trust has been investigated by Monitor after failing to meet NHS waiting times last year.
“This trust has financial and infection control failings that have to be fixed and quickly.
We have taken action because the trust board has not addressed these risks fully.
We need to secure quality patient services for the people of Middlesbrough and North Yorkshire for years to come.
The health sector regulator has found South Tees hospitals NHS Foundation Trust in breach of its licence to provide healthcare, following an investigation.
Monitor started looking into the trust when it failed to meet waiting times in October 2013.
As a result of the inquiry, it has agreed to put right infection control, financial and leadership failings through the following actions.
- Develop and deliver a financial recovery plan
- Appoint a transformation director
- Commission an external leadership review to find out what went wrong and why
- Develop and deliver an action control plan
South Tees Hospitals NHS Foundation Trust has agreed to put right failings revealed in an investigation.
Monitor investigated the trust after it failed to meet waiting times in October 2013.
It has agreed to put right leadership, financial and infection control failings.
More to follow.
Glenn Turp, Regional Director, Royal College of Nursing, and Lee Ranyard, a district nurse in North Tyneside, talk to ITV Tyne Tees about their concerns over pay in the NHS.
Nurses in the North East have been demonstrating outside Newcastle's Freeman Hospital in a long-running dispute over pay.
An independent body recommended a 1% pay rise for all NHS staff.
But the government has decided not to award it to those who are already receiving an increase through career progression.
The government says it's all the country can afford, without risking frontline jobs.
One hundred volunteers have joined hands on Gateshead Millennium Bridge today to mark 30 years of Volunteers’ Week.
It was organised by Volunteer Centres in Gateshead and Newcastle to celebrate people on both sides of the river who give their time to help in their communities.
NHS workers are the country's "greatest asset", but the government cannot afford to pay them more without putting frontline jobs at risk, according to the Department of Health.
An independent pay review recommended a 1% pay rise for all NHS staff in 2014, but the government decided not to award it to those who were already receiving an increase because of progression in their careers.
NHS staff are our greatest asset. That's why at a time of severe funding restraint we have been clear that they should receive at least one per cent additional pay this year and next.
We cannot afford a general pay rise on top of incremental pay increases of up to six per cent without risking frontline jobs and safe staffing levels.
We are disappointed that the unions rejected our offer to discuss any alternative proposals on pay, within an available budget of nearly £1 billion. However, our door remains open if they wish to reconsider their position."
Lee Ranyard, a district nurse from North Tyneside, said his colleagues feel "deflated and demoralised" over the government's decision to withhold a recommended 1% pay rise from some NHS staff.
He said: "No one goes into nursing to get rich... but this is just a kick in the teeth."
Nurses from across the North East of England demonstrated outside the Freeman Hospital in Newcastle as part of a long-running dispute over their pay.
An independent pay review body recommended a 1% pay rise for all NHS staff but the government decided not to award it to workers who were already receiving an increase because of progression in their careers.
The Department for Health said that was all the country could afford, without risking jobs.
Members of the Royal College of Nursing (RCN) are expected to stage a protest outside the Freeman Hospital in Newcastle this morning against pay and working conditions.
The RCN claims the Government have failed to honour a commitment to give nursing staff a 1% pay rise this year.
The protest is expected to start around 8:30am.