According to a report, the Care Quality Commission has warned two hospital trusts that their NHS license will be withdrawn if the management fall short to meet tough criteria to protect patients.

The Care Quality Commission (CQC) has given a green signal to 64 NHS trusts, and will observe in the next two weeks how the rest of the 315 trusts have fared. The commission is now endowed with the authority to inflict tough permits that could see failing hospitals notified, prosecuted, fined up to £50,000 and eventually shut down if they do not succeed to fulfill with its decrees.

Two trusts, Mid Staffordshire and Milton Keynes Hospital, were pointed out by the regulator, that calls for "further urgent improvements". Both are foundation trusts and are expected to signify better governance and financial performance.

Earlier Milton Keynes, was unsuccessful to take quick action to suggestions made in 2008 and then again in January this year, subsequent to the deaths of two babies in June 2007 and May 2009. The commission said, "Inadequate midwifery staffing levels were cited . as factors in the deaths of two babies in the past year".

The regulator has ordered that by 1 April, all women due for delivery at the trust's hospitals should receive one-to-one care from a midwife that would mean additional workforce.

In February, an independent investigation found the Mid Staffordshire trust "routinely neglected" patients and displayed "systemic failings".

However, the commission's Chief Executive, Cynthia Bower is being attacked by activists. Julie Bailey of Cure the NHS, said, "The conditions are a good first step but we have no faith in a regulator with Cynthia Bower in charge. How can she judge something when she did nothing about the hospital when it was killing people?".