The head of the South Bruce-Grey Health Centre is concerned that cost-cutting at the provincial level could end up having an impact on the budget for local hospitals.
Paul Davies says each year they get base budget funding from the province, and each year it usually comes with an increase.
He says over the last few years, those increases have fallen short of the inflation rate.
Davies says the increase last year was 2.1 per cent, and inflation was 3.5 per cent.
He says inflation will still be up around three per cent and most of the agency’s contract costs have a similar increase.
Davies says if there is a zero increase from the province, the three per cent gap means 1.2 million dollars in savings would have to be found.