Worcestershire acute NHS trust has until today to reply to concerns raised by the Care Quality Commission and submit its proposals for improvements.
The Trust which runs the Worcestershire Royal, the Alexandra, and Kidderminster Hospitals was told it could face penalties if improvements were not made.
It comes after two people died on trolleys in A&E at the Royal Worcestershire earlier this year.
The Trust was served a warning notice following an inspection last November.
Worcestershire Acute NHS Trust has been in special measures since December 2015 after it was rated "inadequate" by CQC inspectors.
Staff were told in a leaked email, 'as staff we must all be held accountable for our actions.'
In November 2015, maternity services were removed from the Alexandra Hospital in Redditch and all babies since then have been delivered at the Worcestershire Royal Hospital. The trust said the emergency measure was because it could not recruit enough specialist nurses. Since then, children's A&E services have also moved to Worcester.
News of the deaths came as it emerged that overflowing A&E departments shut their doors to patients more than 140 times in December.
Data from NHS England for December 1 to January 1 this year shows there were 143 A&E diverts across England, a 63% rise on the 88 recorded for December 1 to January 3 the previous year.
Worcestershire Acute Hospitals NHS Trust confirmed investigations into the deaths were ongoing. The spokesperson confirmed that the deaths of both patients will be reviewed by the Trust as are the deaths of all patients in hospital as normal practice.