Headwaters Health Care Centre’s $48-million 2010 budget, balanced in part by a reputed saving of $1.8-million saving by closing Shelburne’s hospital, has been approved by Central West Local Health Integration Network (LHIN).

At the LHIN last week, the approval came after Headwaters provided more detail about the move of the Shelburne complex care beds to Orangeville, among other things, and details of the expected savings were clarified.

As had been mentioned at prior meetings, the actual direct savings with respect to the Shelburne change would be a mere $100,000. However, the move is described as part of an over-all plan to achieve the $1.8-million in cuts.

The major savings, as it has transpired, is related to the reduction of the total number of beds between the two sites, resulting in there being 87 rather than 100, for a budgeted savings of close to $1.4 million.

There is a series of changes, including a general staff reduction (fulltime equivalent) of about 18 as cafeteria hours will be reduced to save about $150,000. Laboratory and drug expenses are expected to be reduced by something like $85,000. Now that the Alliston’s Stevenson Memorial Hospital hospital has its own CT scanner, the Headwaters’ will have fewer demands. A reduction in that service is budgeted to save another $90,000.

There is also an administrative layoff for about a $130,000 reduction in costs at that level.

A question that arose at the Shelburne public meeting was whether the savings could have been realized without moving the Shelburne program to Orangeville.

The answer given was simply that some other service, such as pediatrics, would have had to be cut in order to reduce beds.

The only budget figures released in an agenda package at the most recent hospital board meeting had only general figures.

Expense items listed (in rounded figures here) included: Staff compensation and benefits $32 million; medical staff $4.3 million; supplies and other

6.8 million; medical, surgical and drugs $4 million. Other small items were listed such as bad debts at

54,000 and interest on short term loans at

11,000.

According to the general ledger statement, the amount of cash on hand grew to about $3.8 million at Dec. 31, 2009, from

2.1 million the year before. Total current assets in the same period grew to

5.4 million from $4 million (rounded).

The over-all assets grew to $47.5 million from

45.8 million in that period.