The Minister for Health, Micheál Martin, has given a commitment to maintain the acute A&E facility in Ennis around the clock.
It comes despite a recommendation in the Government-backed Hanly Report that the service be downgraded.
The minister met Mid-Western Health Board executives and hospital staff at Ennis this afternoon, and announced that a design team has been appointed to start work on the first phase of a €20 million development plan for the upgrading of the hospital.
It will involve the refurbishment of the A&E and x-ray departments.
Mr Martin said the Government was committed to improving Ennis General Hospital and its services, and there was no question about its future downgrading.