The report into the death of baby Bronagh Livingstone late last year has been released.
The report was prepared by a former civil servant, Kevin Bonner, for the Minister for Health.
Mr Bonner was asked to examine the circumstances relating to the death of the child in an ambulance last December.
Her mother had arrived at the hospital in the late stages of labour but was transferred to Cavan hospital because of a lack of maternity services.
The incident led to widespread protests.
Due to a lack of maternity services the local ambulance service has delivered two babies in ambulances in Monaghan this month.
In his report Mr Bonner says that a mid wifery-led maternity unit should be provided at Monaghan as recommended by a previous review group.
He says the provision of such a unit would restore confidence to the community and would be of enormous benefit to staff morale.
The report says that similar units planned for both Drogheda and Cavan should be brought into operation as soon as possible so their operation could be evaluated before the opening of similar units in Dundalk and Monaghan.
Mr Bonner said there was a need for improved communications with community groups who should be kept informed of developments and consulted in the future.
He said these proposals provided a sound basis for Monaghan hospital to continue providing excellent patient care.
The Minister for Health, Micheál Martin, has welcomed the report and said Monaghan's best guarantee for the future is to accept change.
However, the grandfather of baby Bronagh says the report effectively confirms the downgrading of Monaghan General Hospital.
