The Northern Ireland Hospice charity was embroiled in controversy
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The Northern Ireland Hospice management has said it accepts recommendations made in a report on the crisis at the charity.
The review recommended that a charities watchdog should be set up in the province.
The long-awaited report into the divisions at the charity also called for the government to play a more active role.
The management said in a statement on Thursday it welcomed the report's suggestions and would work hard to improve its services and restore public confidence.
For the past three years, a row over the charity's chief executive, Tom Hill, has bitterly divided staff and volunteers.
Last November, the Department of Health ordered the review after relations at the charity appeared to reach an all-time low.
Former senior civil servant Sir Graham Hart headed the review team composed of people all from outside Northern Ireland.
Their main recommendations are that the adult and children's hospice services should be divided and run as two separate charities.
It also calls on the government to play a more active role to help in the transition period.
The report acknowledges the charity's reputation was badly damaged by the very public row at the hospice and calls on the government to set up a charities commissioner for Northern Ireland, similar to the one that operates in England and Wales.
Sir Graham said he thought the situation would be "very bad" if Mr Hill did not resign.
"I'm not saying he should resign but the situation needs to be resolved," he said.
"If he remains the chief executive there is a very high risk of further dissension and strife.
"It is therefore time for Mr Hill and the hospice to recognise this fact and to resolve the position."
Northern Ireland Office Minister Angela Smith welcomed the report as balanced and said she hoped it would mark a "turning point for the hospice".
"The hospice has a major role to play in the department and it cannot be left in a state of limbo," said Ms Smith, who is responsible for the Department of Health, Social Services and Public Safety.
Angela Smith welcomed the report as 'balanced'
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"I will need time to consult colleagues, but I can assure you that we will give careful and urgent consideration to each of these recommendations."
Mr Hill stood aside while the investigation was carried out but the review team say his future must be decided between him and his employers, the hospice council.
The review report says, however, that the prospect of harmony if Mr Hill does return to his post seems slight.
Mr Hill had been sacked, then re-employed by the hospice.
Last October, he said he was giving back some of the £80,000 damages he was paid for unfair dismissal before beginning a new role as chief executive.
His suspension, then sacking, as the charity's administrative director caused two years of turmoil within the organisation.
Joe Bowers, who is Mr Hill's union representative, said the chief executive had been exonerated of all blame in two separate investigations.
"Let's get on with running the hospice and let's use the skills and attributes of Tom Hill to do that," he said.
Former hospice chair Rosemary Calvert, who has been a critic of Mr Hill, disagreed, saying: "If he is not acceptable to staff, it will not work."