Texas Breaks Ground on First State-Run Psychiatric Hospital in the Panhandle

AMARILLO, TX — State officials broke ground Tuesday on the new Panhandle State Hospital, the first state-operated psychiatric facility in the Texas Panhandle. The 75-bed, 164,475-square-foot hospital will provide inpatient mental health care to adults across the 26-county region and is expected to be completed in 2027.

Governor Greg Abbott and the Texas Legislature allocated $159 million for the project through the Texas Health and Human Services Commission (HHSC), which will operate the hospital.

"Texas is delivering on its promise to expand healthcare to rural communities across our great state," said Governor Abbott. "This Panhandle State Hospital—the first state-operated facility in the region—will provide Texans greater access to mental health professionals and high-quality care close to home. I thank the Texas Legislature and the Texas Health and Human Services Commission for their work to increase access to mental healthcare for Texans in every corner of our state.”

The new facility will incorporate modern mental health care standards, including access to therapeutic activity areas and outdoor courtyards aimed at supporting patient recovery and social engagement.

“Texans are better served when they have access to healthcare closer to home, and that is why state leaders and HHSC have invested in facilities like the Panhandle State Hospital,” said HHS Executive Commissioner Cecile Erwin Young. “When completed, this hospital will offer hope and healing to some of the most vulnerable people in the Panhandle.”

The project is part of a broader initiative to expand and modernize mental health facilities across Texas. Since 2017, the state has invested more than $2.5 billion in renovations, replacements and new construction of state hospitals.

HHSC currently operates nine state hospitals and one residential youth treatment center, providing care for individuals with severe mental illness, including those found incompetent to stand trial or not guilty by reason of insanity.

For more information, visit the HHSC Changes to the State Hospital System page. Renderings for the new Panhandle State Hospital are available here.