Clutha Health First's annual financial report reveals an organisation in much better shape than the previous year.
Clutha Health First is run by two parent companies both of which reported surpluses.
Clutha Health Incorporated, which owns and manages the hospital buildings in Balclutha, reported an operating surplus of $288,363 for the year ending June 30, 2011, up from the previous year's surplus of $263,934.
Staff and hospital operator, Clutha Community Health Company Ltd, banked a $134,113 operating profit, bringing the company out of the red from last year's deficit of $102,758.
Community Health chairman Brian Dodds said it was a "very solid" year and he was pleased with the progress made on many of the healthcare provider's "strategic goals".
He attributed the improvements in finances to a review of expenses conducted last year as part of Clutha Health First's contract with the Southern District Health Board and a slight increase in income, primarily from ACC.
From July 1 this year, Balclutha General Practitioners Ltd was amalgamated into Clutha Community Health Company Ltd to encourage better integration, Mr Dodds said.
Clutha Health First bought the GP practice in January 2008.
The amalgamated companies posted an operating surplus of $264,565, after last year's deficit of $32,591.
Mr Dodds said he was very pleased with the figure as a surplus of $48,871 was budgeted for.
"It's a much better result than forecast."
The amalgamation process affected operations rather than the financial side, and saw the removal of the team leader community, and team leader inpatient and maternity positions, he said.
These positions would be replaced with the appointment of a clinical director who would cover all other clinical roles within the group.
During the past year a medical students study room was constructed on the first floor of the hospital.
This was partly funded by the University of Otago Medical School, which made a grant of $10,000 towards the project.
