Trust is rated as "requires improvement" compared to "inadequate"
The Trust running hospitals in Lincoln, Boston and Grantham will remain in special measures as inspectors still have major concerns about safety and staffing.
While their overall rating from the Care Quality Commission went from 'inadequate' to 'requires improvement', the regulator says Boston's A&E had too few doctors and nurses on duty when they visited and that patients were left on trolleys due to a lack of beds.
They've also revealed that staffing issues on the Children's Unit were known about 2 years ago - but little was done by managers to solve the problem.
Trust Chief Exec Jan Sobieraj has defended the decision to cancel operations for children over the winter, which the CQC also criticised.