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HHSC Marks Construction Milestone for $159M Panhandle State Hospital

Construction crews placed the final steel beam on the 75-bed Panhandle State Hospital in Amarillo, a $159 million inpatient psychiatric facility the Texas Health and Human Services Commission expects to complete in fall 2027.

The Texas Health and Human Services Commission has reached a major construction milestone at the Panhandle State Hospital in Amarillo, where crews placed the final steel beam on the 75-bed psychiatric facility this week.

The $159 million hospital will provide inpatient psychiatric care across a 26-county region, HHSC said in an Aug. 21 news release. Construction is expected to be completed in fall 2027.

The 164,475-square-foot hospital will provide inpatient psychiatric services to adults and will feature therapeutic spaces that include outdoor areas and natural light throughout the building to promote recovery, according to the agency.

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“This construction milestone is an important step toward expanding access to inpatient mental health care for Texans in the Panhandle,” HHS Executive Commissioner Stephanie Muth said. “When completed, this hospital will serve as an important resource for individuals and families across the region for years to come.”

“The completion of this phase of the project marks a pivotal achievement in ensuring Texans have access to the mental health resources they deserve,” Gov. Greg Abbott said in the release. “This state-of-the-art facility will provide patients with a dedicated space to receive top notch care from trusted providers.”

The hospital will employ as many as 360 full-time staff, with hiring expected to begin in summer 2027, the agency said.

Since 2017, Abbott and the Texas Legislature have invested more than $2.5 billion to replace, renovate and build state hospitals across Texas, according to HHSC. The agency said those projects are part of a comprehensive plan to modernize facilities and increase access to inpatient psychiatric care. HHSC owns and operates 10 state hospitals and two residential youth treatment centers for people experiencing mental illness.


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