Noble's Hospital says it needs £3.5 million to update and expand the unit that cares for newborn babies in need of specialist help.
The Department of Health is seeking Tynwald funding for a new neonatal intensive care centre to be built adjacent to the present special care baby unit, SCBU.
Tynwald has already agreed to spend £200,000 on enabling work; the cash now being sought would fund the build and fitting out.
The Island's special care baby unit has been one of the jewels in the Manx health care crown. New regulations that have been produced for babies that need specialist help mean that reorganising the present facilities would cut the number of cots available to four - and that's not enough.
Adding a neonatal unit would make nine cots available. If Tynwald votes the cash when it sits later this month, work could start almost immediately with completion due mid-way through 2015.
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