Following consultation, the Department of Health has devised a regime which will be implemented as a last resort for dealing with flagging hospitals.
If a trust is deemed to be failing, a special administrator will be appointed to review and monitor services, while ensuring patients still receive safe and efficient care.
This process would only be initiated if previous recovery measures from had been unsuccessful.
David Nicholson, Chief Executive of the NHS believes it is vital to have a defined strategy to rescue failing trusts.
He said: ‘In the rare case when a challenged trust fails to turn itself around, it is important that there are clear processes set out to ensure that services for patients continue to be provided.’
Foundation trusts would be subject to the same recovery regime, but would have their foundation status removed by regulators.