After two years of posting losses, Sharon Regional Health System is on the mend.

The Sharon health care provider showed a profit of $1.1 million in fiscal 2003, which ended June 30. That compares to a loss of $2.3 million in the prior year and a $2.9 million loss in 2001, according to Standard & Poor's, a New York credit rating company. Sharon Regional kept its A- bond rating from S&P, which keeps the rating in the coveted investment-grade category.

A poor showing would mean a company would have to pay higher interest on its debt to attract investors. Investment grade is considered a safe place for investors to park their money.

S&P said in 2003 Sharon Regional embarked on aggressive cost cutting, revenue improvements and reviewing its human resources strategy which, among other things, includes staffing levels.

Over the last five years the nonprofit company has increased its inpatient market share to 43 percent from 39 percent in 1999, S&P said. The report notes that UPMC Horizon, which has hospitals in Greenville and Farrell, has 42 percent of Mercer County's acute care admissions while United Community Hospital in Pine Township has 15 percent.

In fiscal 2003, admissions at Sharon Regional increased by 3 percent while emergency room visits declined by 4.6 percent, according to the report.