TDMHSAS Announces New Site for Moccasin Bend Mental Health Institute Replacement Facility

CHATTANOOGA, Tenn. – The Tennessee Department of Mental Health and Substance Abuse Services (TDMHSAS) and Department of General Services (DGS) are pleased to announce the purchase of a site in Chattanooga for the replacement facility for Moccasin Bend Mental Health Institute (MBMHI).

The new state psychiatric hospital will be sited on a 49-acre parcel located on Birmingham Highway in Chattanooga.  It is located in close proximity to Interstate 24 and the urban core of Chattanooga and only a few miles from the current property.  The site was identified after an exhaustive search of more than three years, covering 127 sites across nine east Tennessee counties.

The new hospital will have capacity for up to 200 beds.  Even with the extensive time necessary to identify a site and increased cost of construction and materials since the project was initially approved, the departments are confident they will be able to complete the project within the original budget of $260 million appropriated by the Tennessee General Assembly in 2022.

“Finding a new site for this hospital has been a lengthy process, but we feel like its new home is a perfect fit for the staff and patients,” said Senator Bo Watson. “Helping those with mental health challenges has always been at the top of my legislative agenda, and I am extremely happy with the new site and the help that the patients and their families will receive here.”

“We are so excited to announce this beautiful new site for our hospital in Chattanooga.  It retains the peaceful feeling of being secluded in nature that our current hospital is known for, and it gives our patients the best environment in which they can heal, recover, and return to community life,” said TDMHSAS Commissioner Marie Williams, LCSW.  “I’m so grateful for the work of everyone who’s gotten us to this day including our Governor and Chief Operating Officer Brandon Gibson, the team at DGS led by Commissioner Andy Kidd and Deputy Commissioner John Hull, the Hamilton County Delegation to the General Assembly, especially Chairman Bo Watson who has worked diligently with us to secure the best site possible, Hamilton County Mayor Weston Wamp, and Chattanooga Mayor Tim Kelly.”

“The core of Moccasin Bend Mental Health Institute is our amazing and talented staff, and we are so pleased that this site will provide us space to continue our exemplary record of service in a brand new facility all while staying as close as possible to our workforce,” said MBMHI CEO Mary Young.

“We are grateful for the opportunity to partner with the Tennessee Department of Mental Health and Substance Abuse Services on a project that will have such a meaningful impact on Tennesseans for generations to come,” said Department of General Services Commissioner Andy Kidd.  “Finding the right location for this new facility was truly a collaborative effort, and we are especially appreciative of Koch Foods for their cooperation and support in helping the State acquire this property. I am also proud of our STREAM team, who have worked closely with TDMHSAS throughout this process. Reaching this milestone is an exciting step forward, and our partnership will continue as we help bring the vision for this new hospital to life. We are honored to play a role in this important investment in the future of behavioral health care in Tennessee.”

“This is a very important investment in the future of mental health care in Chattanooga and across Tennessee,” said Senator Todd Gardenhire. “I’m particularly proud that we are keeping the 450+ jobs in my district and am grateful to everyone who worked extremely hard to find the right location for this new facility.”

“Moccasin Bend is both an important part of Hamilton County’s history and our future,” said Hamilton County Mayor Weston Wamp. “The leadership of state officials to build a new mental health hospital creates an opportunity to preserve more of Moccasin Bend and advance the long-standing vision for its place within the National Park System.”

“Today’s announcement provides continuity for compassionate care and employment in what will be a modern 200-bed facility,” said Chattanooga Mayor Tim Kelly. “Simultaneously, our community can move forward with preserving the Moccasin Bend site, converting it into a landmark public historic park for all to honor and enjoy. This is an opportunity to right that past oversight while re-affirming the commitment of the facility to bring hope of recovery to individuals and families in need.”

The current project schedule shows the design process will continue through the end of 2027 with construction starting in early 2028 and lasting about two and a half years.

How We Got Here

• Spring 2022 – In the FY23 budget, the Tennessee General Assembly appropriated $260M funding to build a new inpatient psychiatric hospital to replace Moccasin Bend Mental Health Institute.
• Summer 2023 – An extensive review looking at dozens of sites determined Moccasin Bend was the best option.
• September 2023 – State Building Commission approved Moccasin Bend Mental Health Institute replacement project pending the results of an archaeological survey of the Moccasin Bend site.
• Summer 2024 – Results of archaeological survey showed significant presence of pre-historic artifacts, therefore it was decided to pursue a site other than Moccasin Bend.
• Fall 2024 – Summer 2026 – Exhaustive search continued with various candidate sites identified but no purchase completed due to various issues.
• January 2026 – Birmingham Highway site was identified as suitable location.
• June 2026 – Hamilton County Delegation approved moving forward with purchase.
• August 2026 – State Building Commission Executive Subcommittee approved purchase.
• September 2026 – Department of General Services closed on purchase of Birmingham Highway property.