A spokesperson for the Care Inspectorate said: "An inspection has identified serious and significant concerns about the quality of care experienced by children and young people at Elmbank House in Falkirk.
"We understand this is a difficult and distressing time for children and young people experiencing care and staff at the service.
"However, our first priority is always the health and wellbeing of people experiencing care.
"Because of our concerns about the safety of young people we have issued an Improvement Notice to the service. This sets out the significant improvements that must be made, swiftly, so that the care experienced by children and young people is of a standard they have a right to expect.
"We are communicating closely with partners including the relevant local authorities to ensure that young people experience appropriate care and support during this difficult time.
"Anyone with a concern can contact us on 0345 600 9527."
The Improvement Notice can be read here.