Residents of a unit for elderly, mentally ill people in Ramsey are to be moved to Douglas, while the DHSS seeks funding to build a new unit.
They're currently cared for in Gardener House, a former ward of Ramsey Cottage Hospital, but an independent report says facilities there are outdated.
It's the only unit of its kind in the north of the Island, so its residents are to be transferred to the purpose-built Elderly Mentally Infirm (EMI) unit Thie Meanagh at Farmhill. That will happen in May.
The DHSS will now seek funds from Tynwald to build a new EMI unit in Ramsey.
Political member for social services, Bill Malarkey, says they aim to create a modern new facility in the north.
Many of those cared for in Gardener House suffer from dementia.
Social Services director, Andrew Swithinbank, admits the move will be an upheaval for residents and their families.
But he says relatives have been involved in the decision.