On Tuesday, construction officially began on the $159 million Panhandle State Hospital, a 75-bed inpatient psychiatric facility at 6610 W. Amarillo Blvd. The groundbreaking ceremony drew local and state officials, community leaders, and residents to celebrate a long-awaited milestone for mental health care in the Texas Panhandle.
The 164,475-square-foot hospital, expected to be completed in 2027, will feature individualized bedrooms, a chapel, a gym, and outdoor courtyards designed to promote recovery and social interaction. Of the 75 beds, 50 will be dedicated to forensic patients—those deemed incompetent to stand trial or found not guilty by reason of insanity—addressing a critical need in the region.
“This hospital is a game-changer for the Panhandle,” said Potter County Judge Nancy Tanner, a longtime advocate for the facility. “We’ve struggled with overcrowding in our jail and limited options for those in mental health crises. This is going to be a Godsend, allowing us to get people the care they need right here in Amarillo.”
The project, funded by the Texas Legislature and supported by Governor Greg Abbott, is part of a broader $2.5 billion state initiative since 2017 to modernize and expand psychiatric hospitals across Texas. The Panhandle State Hospital marks the first state-operated facility in the 26-county Panhandle region, reducing the need for residents to travel long distances for inpatient care.
“Texans are better served when they have access to healthcare closer to home,” said Cecile Erwin Young, Executive Commissioner of the Texas Health and Human Services Commission (HHSC). “This hospital will offer hope and healing to some of the most vulnerable people in the Panhandle.”
Kristy Carr, associate commissioner for state hospitals, emphasized the facility’s role in keeping patients connected to their local support systems. “It serves people closer to home, which is critical for inpatient psychiatric care,” Carr said. The hospital will work closely with the local mental health authority to ensure ongoing access to services and support post-treatment.
Former State Representative Four Price, who has championed the project since his time on the Sunset Advisory Commission in 2011, highlighted the region’s unique challenges. “Our needs in the Panhandle are no different than other parts of Texas, but we’ve had to travel much farther for care,” Price said. “This facility will take the pressure off and provide better healthcare right here.”
The hospital is expected to create 300 to 400 jobs in Amarillo, with West Texas A&M University’s College of Nursing and Health Sciences playing a key role in training the workforce. “Their foresight in bolstering the mental health workforce will benefit everyone,” said Scott Shalchlin, HHSC’s Deputy Executive Commissioner. An additional $4 million secured by State Sen. Kevin Sparks (R-Midland) will support these training efforts.
The groundbreaking ceremony underscored the collaborative effort behind the project. “This has only come together because of the effective partnership between the city, county, state, and Texas A&M system,” Shalchlin said. “The people in Amarillo are the easiest to work with in the entire state.”
Mayor Cole Stanley emphasized the hospital’s broader impact on the community. “This facility brings together so many parts of our system—police, sheriff’s department, hospitals, and mental health organizations—creating a platform to address mental health crises collaboratively,” he said.
State Rep. Caroline Fairly (R-Amarillo) praised the collective effort to secure funding. “Getting $159 million for a project like this is no small feat,” she said, crediting local leaders, state lawmakers, Governor Abbott, and Lt. Governor Dan Patrick for their support.
Lt. Governor Patrick, who did not attend the ceremony but held a press conference at Rick Husband Amarillo International Airport, recalled a 2022 visit to Amarillo where Judge Tanner first raised the need for the hospital. “We were already building five state hospitals in East and Central Texas,” Patrick said. “After hearing from Judge Tanner, we put a plan in place for West Texas, backed by $2.5 billion in the budget.”
The Panhandle State Hospital will provide evidence-based treatment and 24-hour care for adults experiencing severe mental illness, including those deemed unsafe to themselves or others. Designed to meet modern mental health standards, the facility aims to foster recovery through therapeutic environments and community integration.
For Judge Tanner, the groundbreaking was a personal triumph after years of advocacy. “I went home that evening last June when we saw the plans and felt like I’d won the lottery,” she said. “This is really going to happen.”
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