The U.S. Department of Justice has found that the Vermont State Hospital fails to protect patients from harm and uses restraints and seclusion excessively.
The report also says the hospital provides jail-like settings and inadequate psychiatric and psychological services that are not conducive to recovery.
The Department of Justice started investigating the Waterbury hospital a year ago, after the facility lost its federal certification and millions of dollars in funding.
State officials say they expected the report to be harsh. They say they have been working for a year to correct deficiencies at the aging facility.
The Douglas administration is also working on a plan to replace the hospital with a more modern system of care.