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The CQC found it inadequate, its lowest rating, for how safe, effective, caring, responsive and well-led Avondale Lodge is.
In terms of safety, and management, it was deemed 'inadequate.' .' CQC inspectors raised concerns about doors being wedged open and fire drills not being carried out regularly.
The inspector also noted there had been a large number of falls at the home which had not been reported to the CQC, as was required.
A CQC report said that in the month prior to their visit there were three incidents where one person had hurt another, and one incident where a person had their legs stuck in the bed rails.
CQC inspectors identified several concerns with infection control, pressure care management and "capacity challenges".
CQC has been working closely with NHS England and Wolverhampton Clinical Commissioning Group to support the practice while it addresses the issues.
"I know the CQC are looking into disciplinary procedures and what can be done, what sanctions are available, whether you can have forfeiture of pensions, all those things.
Sandwell and West Birmingham Clinical Commissioning Group, responsible for GP services in the area, said previously: "'Patient safety is of paramount importance to Sandwell and West Birmingham CCG, and we fully support the work of the CQC and the findings of their inspectors.
Professor Ted Baker, CQC Chief Inspector of Hospitals, said: "Inspectors found good practice at The Dudley Group NHS Foundation Trust, but they also identified areas where significant improvement was needed."
Another MP, LibDem Tim Farron, added: "We now know that people in the highest parts of the CQC were working to hush this crisis up.
Dame Jo Williams, who has been Chair since 2010, announced her resignation shortly after the CQC launched a consultation paper for their 2013 to 2016 strategy, setting out proposals for what the regulator believes it should focus on.
The CQC also apologised after it rated the hospital "good" following an inspection in 2017.
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