The Georgian Bay General Hospital board has decided the only way to deal with less money than expected from the province is to borrow the difference.
The board met on Thursday night to decide what to do and decided the community has already been hit hard enough by cutbacks.
They hope the Ministry of Health will come up with more money for the hospital. If it doesn't, the hospital will have to look for new ways to cut costs in January.
The hospital has sites in Penetanguishene and Midland and has been reorganizing to handle a $1.7 million deficit.
Even with the cuts, that include plans to move some patients from Penetanguishene to Midland in November and close the Penetanguishene site in 2016, the board is projecting a deficit of $1.3 million.