BARNSLEY East MP Michael Dugher has told the town's hospital must take "all action necessary" to recover from a £7.5 million hole in its finances.
Health watchdog Monitor has told bosses to draw up a plan of action, detailing how they will get the trust back into some form of stability.
An investigation into the hospital's financial irregularities was launched in April, with Monitor finding a 'wider issue' in how it was being run.
"The hospital must take all action necessary to rectify the position they are in," Mr Dugher said.
"Their commitment to a two-year turnaround plan, their willingness to work closely with Monitor and to act upon their advice is welcome. The welfare of patients is paramount."
In the last 18 months, the hospital breached the national target of seeing 95 per cent of its accident and emergency patients within four hours, but the hospital's chief executive Diane Wake outlined the progress it has made since the damning findings were published.
"We met the national four-hour target in March, April and May following changes to the way we work," Diane said. "We are now consistently meeting the target on a day-to-day basis and are working to sustain this over the longer term.
"We would like to reassure patients that quality patient care remains a priority. We are continuing to provide the same high level of care our patients need and deserve."