Staff in a hospital trust that are being investigated for infant deaths say there is a "culture of bullying and harassment", a report has revealed.
The Care Quality Commission (CQC) has now rated the Shropshire and Telford Hospital (SaTH) Trust, which is already in special measures.
Both hospital and emergency services in both hospitals were considered unsafe.
The chief executive of the Trust, Simon Wright, said: "You can not be affected by a report like this."
The 112 page report, published on Thursday, lists a catalog of issues at the Royal Shrewsbury Hospital and the Royal Prince of Telford Hospital, Shropshire. The trust had previously graduated as a "need to improve" in general.
He is currently being investigated for alleged maternity failures, with more than 200 families raising concerns about care in the trust.
Recently, he left a plan to close the Telford Accident and Emergency department during the night due to a shortage of doctors, drafting additional staff instead.
Inspectors as well as bullying and harassment claims said they had "found a culture of defensive by the executive team".
They also find:
- There was low staff morale and high levels of stress and overloading work
- There is a need to improve medical care, surgery, critical care, end of life at both sites
- Medical and nursing staff were "insufficient to keep patients safe" especially in Nhelford
It was considered that a temporary midwifery-led unit in Shrewsbury was used after it was damaged as it was snow in last December "unsuitable for purpose" with senior staff "crisis management".
There was also a shortage of midwives due to illness and maternity leave, the report was found.
By Michael Buchanan, BBC social affairs correspondent
This damn report will be terrible reading for families who have lost babies as a result of errors from this trust.
Talk to any of them, and her lovely wish is that no-one should go through the same experience as they did.
Therefore, the continuing incapacity of the trust, therefore, to ensure that heart rates are monitored and a failure to learn lessons after events, stimulate a stimulating incentive towards those families.
Basically, this is a trust that has been badly led for years.
Today's report is evident in its revocation of current management – not all of them have the "skills and the right abilities" to provide "high quality sustainable care".
Chief Executive, Simon Wright, insists that he is not in his depth, but under his watch the trust has declined.
The recently appointed chairman said on Wednesday that they "can not continue to do the same things as the same people".
The growing chorus in Shropshire for Mr Wright to resign will certainly hope.
The CQC has made many improvements to the trust, listing 81 issues that need to be addressed, including ensuring that staff have & # 39 ; train to protect patients from harm, and review midwife staffing levels to keep women and babies safe.
He said that the trust should also improve the increase in the incidence of women at high risk in the day assessment unit or midwifery-led assessment unit and review its policy on reducing fetal movements to midwives and sonographers
Other necessary improvements included maintaining safe environments, accelerating handling of complaints, safe storage of medicines and antibiotics records and administration for suspected sepsis patients.
However, the inspectors judged that the trust was "good" for being caring and said they had found "examples of excellent practice in end of life care services at both sites" as well as in their post-natal maternity care.
The trust said that some of the CQC concerns had been addressed through the recruitment and improved reports of its maternity services.
Professor Ted Baker, chief inspector of hospitals at CQC, said: "Although we have found that staff are caring and committed, it is clear that there is a lot of work in the trust to ensure that care is provided in a way that makes people safe.
"We are still particularly concerned about the emergency department and maternity services at Shropshire Hospital and Telford Hospital NHS Trust.
"We have already taken urgent steps to protect people and we are monitoring the trust very closely."
The Chief Executive apologized, Mr Wright, and said the trust was "disappointed that we have not made so much progress to address the issues and challenges that the Trust has face them as we all want ".
"But people should not lose sight of many things that SaTH is not very good but significantly better than many other trusts across the country."
Last year, an independent review of a series of infant mortality in the trust was commissioned by the government.
Previously, 3,000 people were estimated to have died in protest over the SaTH scheme to close A & E at The Princess Royal at night, with the trust stating a shortage of staff for its decision.