Albury Wodonga Health hopes to end its current code yellow this week.
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Interim chief executive Janet Chapman said the pressures that led to the internal emergency declaration nearly a fortnight ago had eased.
"Partly because the demand through our EDs has lessened but also because we've got a number of responses in place across our health service," she said on Monday.
"We've increased workforce across the weekends, we've worked in partnership with a number of other health service providers to look at how we can respond effectively to that increasing demand."
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After the code yellow came into force - only a week after a previous one was lifted - Ms Chapman said Albury Wodonga Health needed up to 50 more hospital beds to keep up with the "continued, unprecedented demand".
"We're hoping to move out of code yellow this week," she said on Monday
"We're just monitoring those COVID (case) numbers and a number of staff who are now furloughed because of COVID-related issues."
Victorian health officials reported 9597 new coronavirus cases on Monday.
"We do want to make sure that we are safe going into Easter," Ms Chapman said.
"We need to be confident that we have everything in place to support the community and to support our staff."
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