Good Hope has a history of financial difficulties and its management has been working with Heart of England managers for some time.
NHS West Midlands chief executive of Cynthia Bower said: 'For the first time in many years, after a long period of instability for patients and staff, there is now a secure
and bright future for Good Hope Hospital'.
The decision was announced last week by health secretary Patricia Hewitt following a three-month consultation.
Meanwhile, Monitor has authorised three new foundation trusts. The newly authorised trusts are Dorset Healthcare, York Hospitals, and Christie Hospital, which takes the total number of foundation trusts to 62.
The Department of Health has also given its support to a further nine trusts to apply to Monitor for authorisation.