Cash-strapped Southern District Health Board is being given $10 million so it can pay its day to day bills.
Health Minister Tony Ryall says it has been in deficit for years and has received more than its share of population-based funding.
"This is a one-off payment so the board can pay its day to day bills without always going into overdraft," he said on Tuesday.
Last financial year it was given $6.6 deficit funding and $22 million in 2009/10.
Most of the country's 21 DHBs are in deficit and Mr Ryall says they are changing how they do things to improve their financial performance.