Texas Panhandle set to gain 75-bed mental health facility with land lease agreement

State officials gathered Tuesday to celebrate a significant milestone in the development of mental health care infrastructure in the Texas Panhandle. State Rep. Four Price, R-Amarillo, announced the completion of a crucial land lease agreement between the Texas Health and Human Services Commission (THHSC) and the Texas A&M University System (TAMUS). The deal will facilitate the construction of the 75-bed Panhandle State Hospital, a facility long needed in the region to address mental health care shortages.

“This new state hospital is a long-awaited development for our region,” Price said. “Despite numerous challenges over the years, we have finally overcome them to bring this essential facility to Amarillo. I am profoundly grateful to my legislative colleagues, local leaders, and the Texas A&M University System for their collaborative effort in making this project a reality.”

The TAMUS Board of Regents approved the lease agreement in May. It involves a 10-acre tract of land previously occupied by the Texas A&M Veterinary Medical Diagnostic Laboratory (TVDML) at 6610 W. Amarillo Blvd. The laboratory has since relocated to the West Texas A&M University (WTAMU) campus in Canyon.

“This land lease exemplifies the effective cooperation between state agencies and local entities,” said WTAMU President Walter V. Wendler. “It demonstrates a successful vertical collaboration involving the governor, Texas Health and Human Services Commission, the Texas A&M University System, the City of Amarillo, and West Texas A&M University.”

Under the lease, TVDML will provide the Amarillo site to THHSC for just $1 per year. The state agency plans to begin construction of the mental hospital in late summer 2025, with the facility projected to begin patient admissions in fall 2027.

The 88th Texas Legislature allocated $159 million for the construction of the hospital and instructed THHSC to collaborate with local stakeholders to secure the land.

In a strategic move, the WTAMU Foundation has raised $750,000 to acquire the bus terminal adjacent to the Harrington Academic Hall WTAMU Amarillo Center at 720 S. Tyler St. This acquisition will enable WTAMU to expand its Laura and Joe Street School of Nursing, further strengthening its programs in behavioral health and preparing a workforce to meet the needs of the new hospital.

"This agreement not only addresses a critical need for mental health care in the Panhandle, but also supports WTAMU’s growth and enhances its capacity to train professionals in the field,” said TAMUS Chancellor John Sharp. “This is a pivotal step toward improving mental health services in our region.”

The press conference, held at the Texas A&M AgriLife Extension and Research Building in Amarillo, also featured comments from State Sen. Kevin Sparks, R-Midland, and Scott Schalchlin, deputy executive commissioner for the THHSC Health and Specialty Care System.

Schalchlin highlighted the positive impact of the new facility on regional mental health services. “The addition of 75 beds will significantly alleviate the pressure on existing facilities in Big Spring and Wichita Falls, reducing travel distances for patients and improving access to care,” Schalchlin said. “We anticipate the creation of 300 to 400 permanent jobs once the hospital is operational, not including the construction phase.”

The new facility is expected to play a crucial role in reducing the burden on local jails, which have increasingly become de facto mental health institutions due to the lack of adequate facilities. With 50 of the 75 beds designated for forensic patients — those deemed incompetent to stand trial — the hospital will help address the current backlog and improve the overall mental health treatment system.

“When you look at between Senator Perry and my district, I think we cover about 92 counties across West Texas,” Sparks said. “It just made sense to look at the mental health issue and facilities from a broader perspective across West Texas, so that whatever we build in Amarillo is supplemented by what they have in Lubbock and complements what we have in Midland and Abilene. There are so many different levels of mental health care needed that it’s not practical to have enough beds for every level in every community, but our communities are close enough that we ought to be able to share these facilities.”

The collaborative effort between local institutions and state agencies also includes Amarillo College and Texas Tech University’s pharmacy school, which are expected to contribute to workforce development and training.

“This project is a testament to the power of community and institutional collaboration,” Price added. “It underscores our commitment to improving mental health care across the Panhandle and provides a model for addressing similar needs elsewhere in the state.”

Groundbreaking for the Panhandle State Hospital is scheduled for later this year, with a projected completion date of 2027. The development marks a significant advancement in the region’s mental health care infrastructure, promising to deliver much-needed services and enhance the overall well-being of the community.

This article originally appeared on Amarillo Globe-News: Texas Panhandle set to gain 75-bed mental health facility with land lease agreement