Construction of the Panhandle State Hospital in Amarillo has reached a major milestone, with crews placing the final steel beam on the $159 million facility.
The Texas Health and Human Services Commission announced the hospital has officially topped out, allowing construction crews to move into the next phase of work on the building’s interior.
“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 is being built at 6610 W. Amarillo Blvd. and will provide inpatient psychiatric care for adults across a 26-county region in the Texas Panhandle.
The 75-bed facility will include 50 forensic beds and 25 civil beds. Once operational, it is expected to employ as many as 360 full-time staff.
“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.”
New option for mental health patients in the Panhandle
The hospital is expected to fill a longstanding need in the region, particularly for people who require inpatient psychiatric treatment after entering the criminal justice system.
Currently, patients who have a mental health hearing and require placement in a state hospital can be sent to Wichita Falls when a bed is available.
Potter County officials have said the Amarillo hospital could help relieve pressure on the county jail by providing another place for people with serious mental health needs to receive treatment.
“As we know, our jail is full right now,” Potter County Judge Nancy Tanner said. “We’re having to send people elsewhere. So when we get this hospital, the mentally ill people in jail will go there. I get 25 beds and I’m going to have to share them with the rest of the Panhandle, but that’s okay. I’m willing to do that just to get this hospital.”
The new facility is being designed with therapeutic spaces intended to support patient recovery, including outdoor areas and natural light throughout the building.
Part of statewide hospital investment
Construction began after officials broke ground on the Panhandle State Hospital in May 2025.
The project is part of a broader effort by the state to modernize and expand Texas’ psychiatric hospital system. Since 2017, Abbott and the Texas Legislature have invested more than $2.5 billion to replace, renovate and construct state hospitals across Texas.
Hiring for the Amarillo hospital is expected to begin in 2027 as construction approaches completion.
