Ms Chapman has been the cross-border health service's regional partnerships and planning director for two years and has been instrumental in preparations for the pending $70 million Albury hospital emergency department expansion and intensive care unit upgrade.

"The board is confident that Janet will do a great job as interim chief executive," AWH chair Nicki Melville said.

Mr McJames made the shock decision to resign last month and initially intended to leave on June 7.

But Ms Melville confirmed this week he had agreed to stay on for two more weeks with consultants already appointed to find his permanent replacement.

He was appointed chief executive in 2016 on a five-year contract to replace Sue O'Neill when she was appointed chief executive of St Vincent's public hospital in Melbourne.

Last year, Ms O'Neil returned to her native South Australia in charge of the Southern Adelaide Local Health Network.

It oversees the Flinders Medical Centre, Noarlunga Hospital and other public healthcare services in the southern suburbs.

AWH has had three chief executives with Stuart Spring the inaugural boss.

Ms Melville is also departing the health service at the end of the current financial year after being granted a one-year extension to remain on the board and in the role of chair.

She has been on the board since its inception in 2009.

The announcement of her replacement by Victorian health minister Jenny Mikakos is imminent.

AWH recorded its first "true" operational surplus last financial year of $400,000 after the previous recorded profit was boosted by some one-off, unexpected grant funding late in the financial year.

The health service scored recent federal funding for a $12 million mental health rehabilitation clinic at Wodonga hospital.