Work is underway to eliminate the budget deficit of the Grey Bruce Health Services.
Currently the hospital is implementing cost cutting measures that will save 6.2 million dollars.
But according to an external report released last month the hospital is expected to be 1.7 million dollars in the red by March of 2010.
At last night’s Board meeting in Meaford, President and C-E-O Maureen Solecki says the hospital’s task is to develop a plan to balance the budget by the 2010-2011 fiscal year.
Solecki says the current funding from the Ministry of Health is not keeping up with inflation.
She adds the hospital saw a 9.2 percent increase in surgical volume resulting in cost pressures associated with it.
Solecki says they will be bringing in their managers group, physician leaders as well as other hospital boards and the health unit to work on reducing the deficit.
She says the GBHS has been working cooperatively with other hospital boards for many years.
She says those boards are very concerned about GBHS’s position and wants to make sure they do the best they can within their current budget resources.
Solecki says they will have a difficult challenge not only financially but also in human resources with staff shortages.
She says the two challenges are not unique to the GBHS adding they are also being felt across the province.