Governor Abbott Announces 7 New State Hospital Projects, Including More Than $1 Billion for Two in North Texas » Dallas Innovates

Rendering of the Texas Behavioral Health Center at UT Southwestern.

Seven new state hospital projects, including new ones in Wichita Falls and Terrell, have been announced to better serve people who need inpatient psychiatric services.

Governor Greg Abbott said the Texas Health and Human Services Commission (HHSC) plans are funded by $1.5 billion approved by the Texas Legislature in 2023 to expand, renovate and build new facilities across the state.

Another hospital construction project in North Texas funded by the state of Texas – the nearly half-billion-dollar Texas Behavioral Health Center at UT Southwestern – is already underway.

Abbott said state officials are working hard to improve access to critical behavioral health treatments across Texas.

“Last year, I signed legislation to provide critical funding to expand and build new, modern mental health facilities across Texas,” Abbott said late last month. “These new state hospital projects will help ensure that Texans suffering from mental health issues have access to high-quality mental health professionals and treatment to meet their needs.”

State officials said the hospitals will be of particular importance to many people in the state.

“We are incredibly proud of the transformation of our state hospital system and the opportunities it has created,” Scott Schalchlin, HHSC’s deputy executive commissioner for Health and Specialty Care, said in a statement. “These projects will improve the well-being of more people across the state. We’re not just building hospitals, we’re rebuilding lives.”

Projects in North Texas and Beyond

The following projects are in various stages of planning and design, with many expected to be built later this year:

• North Texas State Hospital-Wichita Falls: Construction of a new 200-bed hospital. Budget: $452 million.
• Terrell State Hospital: Construction of a new 250-bed hospital. Budget: $573 million.
• Panhandle State Hospital (Amarillo): Construction of a new state hospital with a capacity of 75 patients in a non-maximum security unit. Budget: $159 million.
• Lubbock Psychiatric Center: Construction of a new state hospital with a 50-bed maximum security unit. Budget: $121 million.
• Rio Grande State Correctional Facility (Harlingen): Expansion of existing facilities to add a 50-bed maximum security unit. Budget: $120 million.
• San Antonio State Hospital: Renovation of an existing building to add a 40-bed maximum security unit. Budget: $15 million.
• El Paso Psychiatric Center: Planning and land acquisition to expand the existing 50-bed non-maximum security facility. Budget: $50 million.

Abbott and the Texas Legislature have provided $2.5 billion since 2017 for capital projects to modernize and increase access to inpatient mental health care in Texas.

“I thank my partners in the Texas Legislature and the Texas Health and Human Services Commission for their tireless work to increase access to mental health resources that will serve Texans for generations to come,” Abbott said.

HHSC said Terrell State Hospital is a replacement hospital. It will have 250 beds: 50 for maximum security, 140 for non-maximum security forensic, 35 for adolescents and 25 for civilians. Construction is expected to begin later this year.

HHSC plans to build a replacement hospital for the North Texas State Hospital campus in Wichita Falls that will have 200 beds: 24 maximum security, 136 non-maximum security, 24 for children and 16 for civilian inmates. Construction on the Wichita Falls facility is expected to begin later this year.

Grand openings of new hospitals in Austin and San Antonio took place earlier this year. HHSC also completed renovations at Kerrville State Hospital and opened new facilities at Rusk State Hospital and the John S. Dunn Behavioral Sciences Center in Houston.

Texas Behavioral Health Center at Southwestern University

HHSC said construction continues on the 292-bed Texas Behavioral Health Center at UT Southwestern in Dallas. The adult unit and pediatric unit are expected to be completed in summer 2025 and spring 2026, respectively.

HHSC partnered with UT Southwestern Medical Center in Dallas to design, build and operate the Texas Behavioral Health Center at UT Southwestern. It will have 200 adult beds and 92 pediatric beds.

The $282.5 million for the adult wing was approved by the 87th Texas Legislature, and an additional $102 million was approved by the 88th Texas Legislature to complete construction. Children’s Health provided $200 million to build a pediatric wing.

In September 2023, UT Southwestern named Dr. Jonathan Efron as executive vice president for health system affairs. Efron will oversee the integration of UT Southwestern’s clinical, research and teaching missions, which includes the new Texas Behavioral Health Center.

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