Hawke's Bay District Health Board has reduced its financial deficit by 32%.
In February 2008, former Labour health minister David Cunliffe dismissed board members because of what he called a dysfunctional relationship with management and a deteriorating financial performance.
He replaced the board with three commissioners, but nine months later the National-led Government agreed to reinstate board members to work alongside the commissioners.
In the year ending June 2008, the health board had a deficit of $6.7 million.
Last year that was reduced by almost $1 million.
Chief executive Kevin Snee says there has been a further drop in the year ending June, to less than $4 million.