Parliament has been told new governance arrangements for Hawke's Bay District Health Board have worked well.
Hawke's Bay health oficials also told the health select committee that the debt-plagued DHB could be back in the black within two years.
The incoming National Government installed a governance board to run the Hawke's Bay DHB following internal divisions which led the former Labour-led government to sack the board.
The commissioner of the DHB, businessman Sir John Anderson, said the governance board - incorporating former elected board members - has managed affairs well and the DHB has settled down.
The DHB also said it expects to bring its approximately $6.2 million deficit down to almost $5 million by the end of this year.