Legislation will be introduced today extending the term of a commissioner running the Southern District Health Board (DHB).
A commissioner was appointed in June following serious concerns over the board's financial performance, with a deficit forecast of up to $42 million for 2015/16.
Health Minister Jonathan Coleman says the commissioner's team is starting to turn around the deficit and their term is being extended as more time is needed to implement the work plan.
He says there is an improved deficit position of $35.9 million, which shows progress is being made.
Dr Coleman says the bill will ensure that the next board, to be appointed as part of the 2019 local body elections, will begin its term on a more secure financial footing.