The Isle of Man's Health Service will undergo a 'fundamental review' in a bid to address the current and long-term health care challenges.
Former chief executive of three NHS Foundation Trusts Sir Jonathan Michael will oversee the review to look at how the Island can provide modern, fit for purpose health and social care services.
Tynwald Members supported the review in January after the Department of Health and Social Care repeatedly exceeded its annual budget.
Treasury Minister Alf Cannan says: "Effective and appropriate health and social care services are absolutely essential for the continued wellbeing of the Isle of Man.
"I believe we have reached a critical juncture. Financial projections point to funding levels becoming unsustainable in the years ahead.
"Unless positive action is taken there is a concern that healthcare provision may deteriorate or funding for other public services will suffer."
The review will cover a range of issues including the scope and delivery of services, quality and safety, funding, staffing, technology and sustainability.
Evidence will be gathered from healthcare service users and providers, the government and the public – consideration will also be given to other operating models than the English NHS.
Interim findings will be submitted in January next year – the final report will be presented in May 2019.
Health and Social Care Minister David Ashford says: "Our approach to the funding and delivery of healthcare services has not fundamentally changed since the 1940s.
"In common with other countries throughout the world the Isle of Man needs to re-examine and challenge its model in the context of financial sustainability, an ageing population, advances in technology and treatments and increasing public expectations.
"The management at DHSC is focused on the day-to-day delivery of services, so it makes sense to commission an independent review."