Health regulators have launched an investigation into "deteriorating" finances at Birmingham Women's Hospital after it predicted a £3.4 million deficit.
NHS Improvement, which became the foundation trust regulator on April 1, launched the investigation into Birmingham Women's NHS Foundation Trust after concerns over its failing finances.
The inquiry will examine the trust's "worse than expected" financial position and whether it requires any extra support as it plans its recovery.
In a statement, NHS Improvement said: "The trust's financial position is worse than expected and it is predicting a deficit of £3.4 million for 2015/16.
"NHS Improvement wants to see what plans the trust has in place in order to rebalance its finances.
"NHS Improvement will also work closely with the trust's leadership to make sure it is working effectively and if more can be done to support them.
"The trust provides a range of health care services to women and families across the West Midlands and the UK so it is important that NHS Improvement has a clear understanding of what support, if any, the trust will need in order to continue to deliver high quality care."
The dramatic drop in finances follows a stable 2014/15 for the trust when it recorded a £47,000 surplus.
In July, Birmingham Children's Hospital boss Sarah-Jane Marsh was appointed chief executive at Birmingham Women's Hospital - in a dual role across both sites.
Ms Marsh said she welcomed the help of NHS Improvement, adding: "Birmingham Women's Hospital is facing some real financial challenges so we very much recognise the need for this investigation by NHS Improvement.
"While we know we are a good hospital and we are very proud of the care we provide to our patients and families, we also know we need to continue to further improve how we manage our finances from board to ward.
"The challenge and expertise NHS Improvement can provide will help us on the next step of our improvement journey and we look forward to working more closely with them over the coming months."
Regulators are yet to decide whether any action will need to be taken at the trust and the outcome of the investigation will be announced in due course.
Frances Shattock, regional director at NHS Improvement, added: "Birmingham Women's NHS Foundation Trust provides a wide range of specialist services to women and families across the country so it is vital we find out if the trust is doing enough to fix its finances and if its leadership needs extra support.
"We will be looking closely to see if the trust will be able to recover its finances and be in a position to effectively plan for its future so it can continue to provide high quality care to patients."