Health regulator Monitor has closed its investigation into the trust that runs Chorley And South Ribble General Hospital.
It launched the probe into Lancashire Teaching Hospitals NHS Foundation Trust in December because some patients were waiting too long for treatment and the incidence of hospital-acquired infection, although reduced year-on-year, had not decreased enough.
Monitor was concerned the issues indicated a problem with how Chorley and Royal Preston hospitals were run.
But Monitor has confirmed it is now closing its investigating and it has given the trust a “green” rating for governance.
A spokesman for Monitor said: “An independent review, commissioned as part of the investigation, highlighted areas of good performance at a senior level.
“Additionally the trust has taken steps to improve waiting times and infection rates.”
Karen Partington, chief executive of the trust, welcomed the announcement by Monitor.
She said “We are extremely pleased that Monitor has now concluded that it has no concerns about how our hospitals are run. “We have co-operated fully with Monitor throughout the course of this investigation, providing extensive evidence and commissioning an external comprehensive governance review.”
She attributed the increased wait for treatment to an “unprecedented increase in demand for urgent care” and said a number of improvements had been made since, including implementing a new process for scheduling procedures.
She also said the trust works closely with health and social care organisations to develop services to allow people to access the right care in the most appropriate place.
Mrs Partington added: “This clean bill of health will, I hope, assure our patients that we are absolutely committed to providing the very highest standards of care.
“This judgement is also recognition of the fantastic dedication of our staff, who strive every day in what are often very challenging circumstances, to deliver excellent care with compassion.”