AUSTIN, Texas – Texas Governor Greg Abbott today announced that the Texas Health and Human Services Commission (HHSC) will begin construction on a new building at Terrell State Hospital, which will provide inpatient psychiatric treatment to North Texas residents. HHSC held a groundbreaking ceremony this morning to celebrate the start of construction on the new 415,000 square foot hospital. Governor Abbott and the Texas Legislature approved $573 million in funding for the construction of the hospital building, which is expected to be completed in late 2027.
“The groundbreaking for Terrell’s new state hospital is another step in Texas’ continuing efforts to expand and modernize state facilities that provide behavioral health care to Texans,” said Governor Abbott. “Since 2017, Texas has committed more than $2.5 billion to building, renovating and improving state hospitals to ensure Texans in every region of the state have the quality inpatient psychiatric care they deserve. I thank the Texas Health and Human Services Commission for their efforts in building this new hospital as one of seven projects to provide better access to behavioral health services for those in need.”


“Texans deserve access to health care close to home, which is why state leaders and the Department of Health and Human Services have invested in facilities like Terrell State Hospital,” said Texas Health and Human Services Executive Commissioner Cecil Irwin Young. “When completed, this hospital will bring hope, healing and recovery to some of the most vulnerable people in North Texas.”
The new hospital will have 275 beds: 175 non-maximum security, 50 maximum security and 50 adolescent beds. Adult and adolescent patients will be admitted to separate living areas and the maximum security unit will have strict security measures in place to ensure the safety of patients, staff and the community.


The new facility will feature state-of-the-art treatment spaces aligned with evidence-based practices. Private rooms are designed to balance patient privacy and safety, and natural light will flow throughout the facility to promote recovery and healing. Patients will have access to common activity areas and outdoor courtyards to encourage social interaction.
Terrell State Hospital has played a vital role in serving Texans in need for nearly 140 years. The hospital first opened in July 1885 after the 18th Texas Legislature passed a bill calling for the establishment of a mental hospital in North Texas. Today, the hospital serves 31 counties.


Since 2017, Governor Abbott and the Texas Legislature have allocated more than $2.5 billion in funding to rebuild, renovate and expand state hospitals across Texas. Construction continues on the Texas Behavioral Health Center at UT Southwestern in Dallas, and HHSC hosted grand openings of rebuilding state hospitals in Austin and San Antonio this spring. Construction on a rebuild hospital in Wichita Falls is set to begin this fall, and construction on new hospitals in Amarillo and Lubbock is expected to begin later this year.
For more information on the state hospital construction project, Visit HHSC’s State Hospital System Changes page..