Recommendation 1:
Complete the new Austin State Hospital
Obtain the final funding, $124.1M, of the total project cost of $304.6M.
Complete construction of the new ASH and open on-time
in June 2023.
In 2013, the Department of State Health Services (DSHS), which operated the state hospitals at that time, engaged CannonDesign to study the state’s psychiatric hospital infrastructure. With their report, referenced as the “Cannon Report” (Appendix 1) several state hospitals were deemed to be in significant disrepair such that replacement was determined to be much more cost-effective than attempting renovation. These facilities are also architecturally outdated and do not provide appropriate space for clinical teams to provide modern mental health care.
“… several state hospitals were deemed to be in significant disrepair such that replacement was determined to be much more cost-effective”
Based on this information, the 86th Legislature approved funding to begin building a new adult Austin State Hospital (ASH). The total construction cost for the new ASH, including $15.5M for preplanning, is $304.6M with a construction timeline of three years. This timeline provided an opportunity for lawmakers to consider splitting funding between two legislative sessions and decrease the expense impact to the state’s budget in a given biennium. The intention was to complete the new hospital by providing initial funding ($165M) in the 86th session and final funding ($124.1M) in the 87th session. This split funding approach increased the original construction cost from $283M to $289M, adding an additional $6M due to cost escalation and delay of buyout process of construction with this decision. The construction began in late 2019 and is expected to be completed on time and on budget in spring of 2023 as long as the remaining funding is provided by the 87th legislature as planned.
“The intention is to complete the new hospital by providing initial funding ($165M) in the 86th session and final funding ($124.1M) in the 87th session.”
The initial funding ($165M) began two construction packages, the Early Release Package (ERP) and the hospital construction. The ASH Campus is not only the location for the hospital, but also the location of supportive services needed to operate ASH and other state buildings supporting HHSC’s operations (e.g. kitchen, linen, maintenance). Figure 4 displays the ASH campus’ building use prior to construction. The ERP consisted of clearing a 15-acre site for the new hospital, rerouting and establishing new utility infrastructure, renovating existing buildings to relocate support services and building a new warehouse. Figure 5 is a photograph of the new warehouse located on the corner of Lamar and 45th street. The new warehouse will support ASH and became operational January 2021. The ERP is on schedule to complete by March 2021, overlapping with the start of the new hospital building that began in November 2020.
Based on this information, the 86th Legislature approved funding to begin building a new adult Austin State Hospital (ASH). The total construction cost, including $15.5M for preplanning, for the new ASH is $304.6M with a construction timeline of three years. This timeline provided an opportunity for lawmakers to consider splitting funding between two legislative sessions and decrease the expense impact to the state’s budget in a given biennium. The intention is to complete the new hospital by providing initial funding ($165M) in the 86th session and final funding ($124.1M) in the 87th session. This split funding approach increased the original construction cost from $283M to $289M, adding an additional $6M due to costs escalation and delay of buyout process of construction with this decision. The construction began in late 2019 and is expected to be completed on time and on budget in spring of 2023 as long as the remaining funding is provided in a supplemental appropriation by the 87th legislature as planned.
The initial funding ($165M) began two construction packages, the Early Release Package (ERP) and the hospital construction. The ASH Campus is not only the location for the hospital, but also the location of supportive services needed to operate ASH and other state buildings supporting HHSC’s operations (e.g. kitchen, linen, maintenance). Figure 4 displays the ASH campus’ building use prior to construction. The ERP consists of clearing a 15-acre site for the new hospital, rerouting and establishing new utility infrastructure, renovating existing buildings to relocate support services and building a new warehouse. Figure 5 is a photograph of the new warehouse located on the corner of Lamar and 45th street. The new warehouse will support ASH and became operational January 2021. The ERP is on schedule to complete by March 2021, overlapping with the start of the new hospital building that began in November 2020.
Securing the investment toward a new psychiatric hospital reflects the strong support Texas lawmakers have for improving the mental health system to provide the best care possible for our most vulnerable citizens. Therefore, HHSC has requested the remaining $124.1M to complete the new ASH construction and to ensure an opening date of June 2023.
“HHSC has requested the remaining $124.1M to complete the new ASH construction and to ensure an opening date of June 2023.”
Recommendation Summary:
Complete the Construction of the new Austin State Hospital
• The current Austin State Hospital needs significant repair and must be replaced.
• The Cannon Report found it more cost efficient to build a new hospital than repair the old one.
• The 86th Legislative Session approved funding to build a new adult hospital on the ASH campus.
• Texas lawmakers provided an initial $165M to begin construction with the remaining $124.1M planned to be appropriated in the 87th session to complete construction on time.
• Additional residential treatment and housing options in the service area ultimately decreases expenses of higher level of care and provides opportunities for people to recover in a more appropriate and less restrictive setting.
