Headwaters closes fiscal year with $1.6-million surplus as expansion plans move forward

By Sam Odrowski

Headwaters Health Care Centre ended the 2025-26 fiscal year with a $1.6-million surplus, after opening its first MRI suite and identifying nearly $5 million in cumulative budget savings over two years, according to the hospital's newly released annual report.

Revenue rose $7.2 million to $120.3 million, driven largely by increased funding and higher inpatient revenue, while expenses climbed $5.4 million to $118.7 million amid rising compensation costs, inflation and growing demand for care, the report states.

Headwaters Health Care Centre said the surplus was largely due to one-time funding and careful financial management.

“Overall, the year-end surplus was largely the result of one-time and unanticipated funding received, combined with careful financial management,” she said.

The hospital also identified significant savings over the past two years, including $2.5 million earmarked for the upcoming fiscal year. 

A representative of Headwaters said the savings didn't come at the expense of care.

“Over the past two years, Headwaters identified approximately $5 million in savings through benchmarking, operational efficiencies, and careful supply and budget management,” she said. 

“Throughout this work, patient care remained our top priority. We continued to meet key performance targets, including all surgical targets, and strong emergency department performance, demonstrating that financial improvements were achieved while maintaining quality care and access for patients.”

Headwaters' fiscal discipline will support its next major infrastructure project, the expansion and renovation of the Emergency Department. This will take place alongside upgrades to the hospital's diagnostic imaging and laboratory. 

The report identifies the project as a major priority heading into 2026-27, with Phase II set to move into detailed design and pre-construction. A firm timeline, however, is not yet available.

“At this stage, we are unable to confirm specific timelines as the project continues to move through the Ministry of Health approval process,” Headwaters said. “We are working closely with the ministry to advance the project and will share updates as key milestones are reached.”

Once the project moves forward, Headwaters said residents can expect changes in both mental health and trauma care.

“Some of the intended benefits of the expansion include a dedicated space for mental health and enhanced trauma care areas,” she said. “The project is also being designed to support more efficient patient flow, helping patients access care more quickly while improving the overall care experience.”

That mental health space would be the hospital's first dedicated area designed to support patients experiencing a mental health crisis.

“This new space will provide a calmer, more private setting within the main Emergency Department,” Headwaters said. 

The hospital's other major milestone this year was the October 2025 opening of the Morningview Foundation MRI Suite, Dufferin-Caledon's first MRI service, built with capacity for up to 8,000 scans annually and funded through the Headwaters Health Care Foundation's Smart Headwaters campaign. 

Uptake has been steady since the doors opened.

“Since launch, we have completed 5,100 MRI scans and are on track to reach 6,000 in the first year,” Headwaters said. “Prior to this service, these patients would have been referred to hospitals outside our catchment area for MRI care.”

The Smart Headwaters campaign wrapped up in June of last year after surpassing its original $18-million fundraising goal, which helped fund the MRI suite, advanced diagnostic technology and clinical education initiatives.

For the year ending March 31, 2026, Headwaters reported 34,722 Emergency Department visits, 22,661 outpatient visits, 5,496 day surgeries, 984 inpatient surgeries, and 1,139 babies delivered. The hospital also conducted 424,569 lab tests and 74,561 diagnostic imaging tests. 

Headwaters has 86 beds, 849 staff, 193 physicians and midwives, and 248 volunteers.

Looking ahead, Headwaters said it will continue to focus on expanding local access to care, advancing planned infrastructure projects, and maintaining financial stability.