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TheOtherDave comments on Some reservations about Singer's child-in-the-pond argument - Less Wrong
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I try in general to replace the "lives saved" metric with the "QALYs gained" metric for precisely this reason; maximizing lives saved has some very strange properties. (My go-to example is that it leads me to prefer to avoid curing a condition that causes periodic life-threatening seizures, preferring to treat each seizure as it occurs.)
You can get around that particular example by disvaluing lives lost, rather than valuing lives saved. Of course I agree that actually QALYs or something similar are a far better metric.