You can read through the Code of Good Practice on ill health. It is easy reading and will probably provide most answers.
In short you must conduct an enquiry to ascertain reasons. You have done this.
Then try and arrive at a solution.
A solution may be to have him work half day, or 3 days a week etc,ect. if you cant operate like this then you can either let him go on leave for a period of time and employ some one on contract or do the ill health dismissal.
If his absence is of a nature that it is not predictable, eg he wakes up and is too ill, in other words of a manner that you can not work around or plan for, then again teh temporary leave or dismissal are the options.
The nature of the job and the possibility of filling teh position on a temporary basis are also factors.
Your business operation is an important element of the equation.
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