Hawke's Bay District Health Board hopes to balance its books by the end of June.
Former Labour Health Minister David Cunliffe sacked members of the elected board 2.5 years ago, because of a deteriorating financial performance and a dysfunctional relationship with management.
In the year ending June 2008, the DHB had a deficit of almost $7 million.
Chief executive Kevin Snee says that dropped to almost $4 million in the past year and the aim is to eliminate the deficit over the next year.
He says latest figures show the board has met, or is exceeding, most of the targets set by the Ministry of Health.