Governor Abbott Announces Construction Of New Panhandle State Hospital

TEXAS, June 10 - June 10, 2025 | Austin, Texas | Press Release

Governor Greg Abbott today announced the Texas Health and Human Services Commission (HHSC) broke ground this morning on the new Panhandle State Hospital in Amarillo. Governor Abbott and the Texas Legislature approved $159 million in funding for the inpatient psychiatric hospital, which is expected to be completed in 2027.
 
"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.”
 
“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 164,475-square-foot, 75-bed hospital will provide high-quality inpatient psychiatric services to adults. The hospital is designed with the latest mental healthcare standards in mind to promote recovery and healing. Patients will have access to common activity areas and outdoor courtyards to encourage social interaction.
 
This is the first state-operated hospital in the 26-county area.
 
Since 2017, Governor Abbott and the Texas Legislature have invested more than $2.5 billion to replace, renovate, and build state hospitals across Texas. These projects are part of a comprehensive plan to modernize facilities and increase access to inpatient psychiatric care.
 
HHSC owns and operates nine state hospitals and one residential youth treatment center for people experiencing mental illness. The hospitals provide evidence-based treatment and 24-hour care to patients across the state who have been deemed to be unsafe to themselves or others, incompetent to stand trial, or found not guilty by reason of insanity.
 
For more information about state hospital construction projects, visit the HHSC Changes to the State Hospital System page. Renderings for the new Panhandle State Hospital are available here.