Heartlands Hospital yesterday signed a deal to take over the running of Good Hope Hospital to help it to tackle its cash crisis.
Board members had sent out a plea for help to Heart of England and University Hospital Birmingham NHS Foundation Trusts.
The Sutton Coldfield hospital, the first in the country to be run by private company Secta, has an £11.6 million budget deficit.
It was left without a chief executive after Anne Heast left in September for a new post. Dr Mark Goldman, who steered Heartlands to become one of Birmingham's first foundation trust hospitals, has now taken over as Good Hope's chief executive.
It is hoped that plans for 200 redundancies and a 30-bed ward closure can be replaced with other cost- cutting measures.
Dr Goldman said: "This is a short-term arrangement until March, 2006, to help to bring the trust into financial balance by the end of this financial year.
"However, we also want to help Good Hope devise a long-term plan for their recovery and also to achieve foundation status by 2008.
"This arrangement will not impede the day-to-day running of Heartlands or Solihull Hospital. We've ensured there's enough management support to allow the trust to continue to develop.
"This will give people at Good Hope the opportunity to do things they've not had the time or capacity to do before, because they've been so short of support."
He added it was not a takeover or merger, and that the Sutton Coldfield hospital would remain a separate trust.
Heart of England's chief operating officer Phil Milligan and chief finance officer Becky Fenton will be among the senior staff working with Good Hope in planning the hospital's future.
The decision to seek interim management support was made after Good Hope's board members decided to pursue foundation trust status and Anne Heast announced she was leaving the trust in September.
Graham Comfort, the trust's chairman, said: "Working with Heart of England was seen by the board as the best option for Good Hope and the local health economy.
"Good Hope Hospital needs to achieve recurring financial balance and prepare for achieving foundation status in 2008.
"Heart of England's success in achieving both these objectives will prove invaluable to us as an organisation.
"We are looking forward to using their expertise and experience to plan for Good Hope Hospital's future success."
Heartlands Hospital was granted foundation status last April.
It also has a strong financial record and a three-star Government rating, while Good Hope failed to improve its one-star performance.
Sophia Christie, chief executive of Eastern and North Birmingham Primary Care Trusts, said: "It is good to see collaboration between local NHS organisations in this way during what could otherwise be a difficult time for a major hospital.
"The Heart of England NHS Foundation Trust has a strong track record of partnership working with Eastern Birmingham PCT. I believe that our colleagues at Heart of England are therefore very well placed to help and support Good Hope at this time."