Last night in Undercover Care: The Abuse Exposed, the broadcaster showed secret footage from inside Winterbourne View, which treats people with learning disabilities and autism.
The documentary, which was the result of five weeks of filming, captured what it called a "pattern of abuse" with patients appearing to be being pinned down, dragged and doused in water while fully clothed.
In a statement care services minister Paul Burstow said there "can be no place for such inhumanity in care services".
"I have already asked CQC (Care Quality Commission) to undertake a series of unannounced inspections of similar services.
"There have been failures of inspection and adult protection which have exposed people to appalling abuse. I have already ordered a thorough examination of the roles of both CQC and the local authorities in this case.
"I am determined to strengthen the system of safeguarding, to protect vulnerable adults from abuse."
According to the BBC the hospital's owners, Castlebeck, have apologised and suspended 13 employees, while police have arrested and bailed four people.
It is also reported that Castlebeck has launched an internal investigation into whistle-blower procedures and are reviewing the records of all its patients.
In a statement Castlebeck's chief executive officer Lee Reed said he was "shocked, disgusted and ashamed" by what he saw on Panorama.
Speaking to the BBC this morning undercover reporter Joe Casey said filming the abuse was the hardest thing he had done.
"It was incredibly tough. It was absolutely distressing, more so for the patients who had the unfortunate position of going through it themselves."
Free daily newsletter
- How to get your next podcast commissioned
- Weekly journalism news update: how to 'unbias' the news, interactive timelines and solutions-based photojournalism
- The Sista Collective: a BBC podcast that puts BAME women at the heart of key conversations
- Value My News to help UK-based hyperlocal publishers monetise content
- How BBC Good Food used voice search analytics to cook up its first Alexa skill