Following the inspection in September, the facility was rated as outstanding for being caring and well-led, and was rated good in safe, effective and responsive categories.
Inspectors found staff assessed and managed risks to people and themselves well and took practical steps to enable people to make their own decisions.
Gemma Berry, CQC deputy director of operations for mental health in the North East, said: “People and their families gave overwhelmingly positive feedback about the care received, including how kind, compassionate and dedicated staff were.
“Leaders and staff were exceptional at including people and their families in every stage of their treatment.”
The CQC was impressed that leaders chose an employee of the month and staff always had time for friendly chats, discussing people’s hobbies with them.
Inspectors also said staff posted on social media about celebrations and cultural events, which “created a happy culture where people and staff felt valued”.
“They clearly work hard to provide an exceptional service to people and other mental health services should look to this report to see what they can learn,” Berry added.
Walker said: “Our staff are wonderful here, everyone supports each other and pulls together to provide the highest quality person-centred care to our patients.
“I’m so proud of our team, our patients and our hospital.”