An NHS Trust, rated inadequate for more than two years, has been awarded an improved grade by inspectors.
Isle of Wight NHS Trust has made "improvements in most areas" and is no longer unsafe overall, the Care Quality Commission (CQC) said.
Although it recommended the trust should remain in special measures, the CQC gave the trust a rating of "requires improvement".
The trust said it welcomed the change and was committed to improving further.
The CQC's 2017 report found "unsafe" mental health services, widespread understaffing and a "subtle culture of bullying".
A further report in 2018 said the trust remained "inadequate" amid "significant concerns" over patient safety.
Dr Nigel Acheson, from the CQC, said improvements had been made but further work was needed.
He said: "In particular, the trust needed to ensure there were sufficient and suitably qualified staff available and that systems... ensure patients were protected from avoidable harm."
Inspectors said some patients were put at risk by delayed care or by being treated in "non-patient bed spaces".
Mental health services and the trust's use of resources were rated "inadequate" overall.
Medical care, gynaecology and some mental health services were also given "inadequate" safety ratings.
The CQC added the trust had "one of the highest percentage deficits nationally", driven by high pay costs.
Ms Oldham said she was "particularly proud... that Community, End of Life Care, frontline ambulance services, NHS 111, and the Urgent Care Service have been rated good".
The trust said its emergency department had been upgraded to "requires improvement" and the conditions of a warning notice imposed in January had been met.