Cash saved by Nelson Marlborough District Health Board will go towards an extensive capital programme expected in IT and seismic strengthening of buildings.
At the board's monthly meeting, chief executive Chris Fleming said this month showed a surplus of more than $1.2 million, which was $494,000 ahead of plan. There had been no reduction in services to achieve the surplus.
The cost of locums in Wairau and clinical supplies had been more than expected. However, these costs were offset.
As a result of the board's improving financial picture it has been taken off intensive monitoring by the National Health Board.
The board was placed under intensive monitoring in January and had to provide bi-monthly reports. It has been moved back to "performance watch".
If the board meets its financial and elective surgery expectations by June 30 it will be placed on "standard watch" monitoring every six months.
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