The HSE has confirmed that its investigating serious deficiencies in maternity care at Portiuncula Hospital in Co Galway last year.
The investigation follows the deaths of two babies during childbirth between February and November 2014.
A further five babies were seriously deprived of oxygen during delivery and had to be transferred to hospital in Dublin for emergency care.
The review found deficiencies in the interpretation of foetal heartbeat recording (CTG tracing), the administration of drugs to accelerate labour and instrumental delivery.
The HSE said that the seven families "are being contacted" by the hospital.
The babies will be part of an independent review and the findings will be given to Minister for Health Leo Varadkar.
