Health bosses at Watford General Hospital are confident its improving record on quality of service and financial management will be recognised later this year.
The Healthcare Commission has rated West Hertfordshire Hospitals NHS Trust, which runs the hospital, as weak in both categories for the past two years.
But chief executive Jan Filochowski said the Trust will become "fair fair" when the 2008 report is published in October.
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He said: "As I have stated before, when I first looked at the Healthcare Commission ratings on my arrival in November, it seemed that we had already failed for this year.
"I am delighted to say that because of enormous, consistent improvements and huge efforts by our staff I have been proved wrong. The 2007/08 year finished in March and we have hit nearly every target, thanks to a quite exceptional performance in the last six months."
Central to this has been the Trust's effort to record a £2.5million surplus at the end of the financial year, compared to an £11million deficit the year before. Mr Filochowski said this was due to "managing within our budget" and increasing the amount of work carried out by the Trust.
In addition, the Trust was named among the country's top 40 hospitals, by company CHKS, at a ceremony in London on Tuesday.
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