The Department of Health is pressing ahead with plans for a new health centre in Jurby.
It will be built on the site of the former Jurby Hotel, which is already owned by the DHSS, and will cost around ?1 million.
Building is scheduled to start in 2012.
The Island's current economic situation has seen the plans substantially scaled down from a previous set of proposals.
But Health Minister Eddie Teare says the design will allow for possible expansion in years to come, should funds become available.
He says he knows the people of Kirk Michael, who wanted a new medical centre to be sited there, will be disappointed, but that just wasn't feasible at this time (play audio file):
Mr Teare, who will be moving to the Department of Education next month, is sure his successor will keep the situation in Michael under review.
He says if there is new building within the village, or the possibility of a branch surgery from existing GP practices, the matter is likely to be reconsidered.
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