Environment Minister Steve Luce has signed a ministerial decision rejecting the application, following a review by an independent planning inspector.
In a statement, Health Minister Andrew Green said: ‘I am naturally disappointed that the outline planning application has not been approved.
‘The inspector has agreed this is the right location for a new hospital, but that the proposed site is too small for the size of building that’s needed. Complex planning permissions of this kind are often the subject of prolonged discussion.
‘I will now take time, with the project team, to study the detail of the inspector’s report so we can plan the next steps.
‘Everyone agrees that Jersey needs this new hospital and I am committed to delivering it. We need to work together to see how we can best provide Jersey with this essential facility on the agreed location.’