HHSC Reaches Construction Milestone for Panhandle State Hospital

AMARILLO - The Texas Health and Human Services Commission reached a major construction milestone for the 75-bed Panhandle State Hospital in Amarillo after construction crews placed the facility's final steel beam this week.

The $159 million hospital will provide inpatient psychiatric care across a 26-county region. Construction is expected to be completed in fall 2027.

"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. "This state-of-the-art facility will provide patients with a dedicated space to receive top notch care from trusted providers."

The 164,475-square-foot hospital will provide high-quality inpatient psychiatric services to adults. It will feature state-of-the-art therapeutic spaces, including outdoor areas and natural light throughout the building to promote recovery.

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

Since 2017, Gov. 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 10 state hospitals and two residential youth treatment centers for people experiencing mental illness. For more information about state hospital construction projects throughout the state, visit the HHSC Changes to the State Hospital System page.

Access photos from the ceremony and renderings for the new Panhandle State Hospital (ZIP).