Hatton said the hospice touched many families across the island.
“There’s not many people that I have met in the short five months I’ve been in this role that don’t have some story to share with me about how Hospice [Isle of Man] supported them, or a loved one, or a friend, or a colleague through incredibly difficult times in their lives.”
But as part of cost saving measures, the charity said it would stop “filling gaps in the wider healthcare system”.
Hatton said making “difficult decisions now” were needed to “protect the long term future”.
Hospice Isle of Man said it would continue working with the government and Manx Care and planned to launch a campaign in May calling for “a fairer funding model” and an increase in government support.
In a statement the Department of Health and Social Care and Manx Care said it was committed to supporting the hospice to continue providing its services.
It added that a number of services, including physiotherapy and occupational therapy would transition from the hospice into Manx Care.
The healthcare provider was working with the hospice to make this a smooth transition for patients, it added.