Morecambe Bay Hospital, was placed in special measures three years ago, has made a "truly remarkable turnaround", according to the Care Quality Commission.
The recent inspection by the Care Quality Commission (CQC) rated the University Hospitals of Morecambe Bay NHS Foundation Trust as good with some areas, including aspects of the once heavily-criticised maternity unit, were found to be outstanding.
The trust put the improvements down to the "hard work" of staff.
The trust manages Furness General Hospital in Barrow, Lancaster Royal Infirmary and Westmorland General Hospital in Kendal, as well as smaller community hospitals in Morecambe and Ulverston.
Professor Sir Mike Richards, CQC Chief Inspector of Hospitals, said: "Our inspectors found that further significant improvements had taken place across the trust and it had clearly benefitted from the support provided by the special measures regime". "This is a truly remarkable turnaround for a trust that has faced very significant difficulties - senior management and staff deserve huge credit for this".
Jackie Daniel, the trusts chief executive, said: "It's been sheer hard work and determination really on behalf of the staff". "They've gone to bigger units, picked up national best practice and learned from the best". "Also the families that tragically lost loved ones - although we can't reverse that - have been working with us, giving us feedback".