As Auburn Memorial Hospital updated its yearly financial picture, it received an early Christmas present.

The Allyn Foundation gave the hospital $1 million for two capital improvement projects, the organization announced Wednesday.

The money will fund the institution's half of a matching $4.4 million state grant for the Healthcare Efficiency and Affordability Law for New Yorkers (HEAL NY) program. That project includes renovating patient rooms, modernizing the HVAC system and renovations to operating rooms.

The grant marks the largest amount the foundation ever awarded an organization. The Skaneateles Falls organization earlier provided the hospital with other grants, such as a $100,000 gift in June 2006 during its restructuring phrase.

Allyn representatives have repeated their belief that the medical facility is vital to the community.

“Auburn Memorial Hospital is critical to the overall economic and physical health of the community,” said Bill Allyn, foundation board president. “While significant financial obstacles remain, we have faith and confidence in the hospital's future.”

The foundation has financially supported the hospital's capital improvements projects through the years and foundation officials have sat on AMH's board.

Board member Dr. Peter Soderberg stated in a press release that the gift demonstrated the foundation's faith in the organization, which has addressed critical financial, he said.

Auburn Memorial Hospital also said Wednesday it generated operating gains of nearly $200,000 in November and $1.3 million in annual operating profit heading into the final month of 2007.

The report came as the hospital's board of trustees gathered Wednesday. AMH said it expects to be able to post a $1 million gain for the fiscal year.

The operating gains are crucial for a hospital that has struggled financially in previous years. The problems culminated with the hospital filing for Chapter 11 bankruptcy protection in April.

The hospital is now working on a formal Chapter 11 reorganization plan, which could be finalized in the first half of next year.

“As we end 2007 with a profit for the first time since 2002, we want to assure our community that AMH re-invests the profits to provide new programs and services to the people we serve,” said Scott A. Berlucchi, AMH's president and chief executive officer, in a press release. “Our success is directly attributable to an overall team effort on behalf of our board, medical staff and nursing leadership, and most of all our very dedicated employees.”