The U.S. Department of Justice says the Vermont State Hospital in Waterbury is making improvements, but more needs to be done.
The inspectors are keeping tabs on the hospital as part of a monitoring program stemming from a critical 2005 report.
In the report today, the state was applauded for making progress in several areas, including treatment planning and protecting patients from harm.
But the state must still improve in the areas of rehabilitation assessments, patient participation in discharges and psychological rehabilitation services.
The report was written by two physicians who visited the hospital in June.
They will be back in October for another inspection.