Joe Nuttall scored a second-half brace but his side suffered defeat at York Road in their first away game of the new season.
Talking after, Hill said: "I'm disappointed with the scoreline and the reflection of the first half, Our performance was very slow and lacked physical competitiveness, while we made mistakes for the goals - they're not ones we've made in pre-season and we certainly didn't last week. We've been very resolute and very compact, but it was far too easy for the opposition to score.
"You get to half-time and try to take the emotions out of it. We had opportunities even before their first goal, with the Joe Nuttall free header and Liam Feeney's one that hit the bar. I'm disappointed we didn't score one of those opportunities.
"Their first goal came straight after the drinks breaks and we switched off. To concede two goals from set-plays in the first half, one just before half-time, it seemed like a big mountain to climb but it's one we should have climbed. We got two goals back in the second half and if you look at the chances we missed in the second half, through Andrew Boyce and Marcus Carver, who came on and made a great impact, if we'd have taken those we'd have taken something from the game.
"I do believe this squad of players is capable of keeping clean sheets and scoring goals. I'm just hoping today is a valuable lesson for the group. We can't take the opposite lightly. They're honest, hungry and see you as a scalp. I don't think we played well back-to-front defensively in the whole of the first half."
See much more from Keith Hill and Andrew Boyce on Iron Player.