Monitor has approved the trust special administrators’ proposal for Mid Staffordshire Foundation Trust to be dissolved.

The administrators said Stafford Hospital should continue to operate an emergency department, albeit with reduced opening hours, and a midwife-led maternity unit.

Under their plans, consultant-led obstetrics and inpatient paediatric services would move to University Hospitals of North Staffordshire Trust, although Stafford would retain a paediatric assessment unit.

Stafford Hospital would be run by University Hospital of North Staffordshire Trust and Cannock Chase Hospital would be run by Royal Wolverhampton Hospitals Trust.

The administrators’ recommendations now require approval from health secretary Jeremy Hunt. He has to make this decision by 26 February.

Monitor could only accept or reject the TSAs’ recommendations and was unable to amend them. However, Mr Hunt can require the TSAs to amend their report if he feels it does not meet tests as set down in the legislation, including securing essential services demanded by local commissioners and offering good value for money.

Monitor’s report on its recommendations states: “Monitor has acknowledged that with the benefit of hindsight it was a mistake to grant the trust foundation status. We didn’t have a full picture of the state of care at the trust at the time.”