Noble's Hospital currently has 314 beds and 20 wards

Steve Rodan MHK, Department of Health and Social Security (DHSS) minister, said any cost savings such as ward closures "would not be acceptable".

Mr Rodan also said that services to hospital patients would not be reduced.

Bed cuts and ward mergers had been reportedly considered to balance the books at Noble's Hospital.

The DHSS said it would continue to identify potential areas for improved efficiency and cost savings across all its health divisions and services.

External expertise

The news followed a meeting between the DHSS and representatives of the Isle of Man Medical Society.

Mr Rodan indicated that a working group led by the Chief Minister would consider the longer term and wider analysis of health and social care funding.

This work, it is expected, will include the use of external professional expertise.

Dr May Shiu Chan, vice chairman of the Medical Society's Executive Committee, said: "We are delighted that the minister has confirmed that there will be no cuts to clinical services in the forthcoming year 2006/7.

"We recognise that efficiency savings may be needed and look forward to an ongoing open and honest dialogue between the Medical Society and the DHSS."