Hawke's Bay District Health Board is forecasting an operating surplus of $2.5 million, for the year ending June.
In February 2008 former Labour Health Minister David Cunliffe sacked board members, because of what he called a dysfunctional relationship with management and a deteriorating financial performance.
That year the DHB had a deficit of $6.7 million. Last year, it was just under $4 million.
Chief executive Kevin Snee says since then there's been a lot of hard work done to save money, without reducing the quality of the service.
Mr Snee says it's not only paid off, but in some areas such as elective surgery and the emergency department, the performance has improved.
He says immunisation rates are the best in New Zealand.