CHATTANOOGA, Tenn. — Tennessee officials are once again searching for a location to build a new psychiatric hospital to replace the aging Moccasin Bend Mental Health Institute in Chattanooga.
The search resumed after the Tennessee Department of General Services announced it would no longer move forward with plans to build the replacement facility on a 49-acre property along Birmingham Highway in Lookout Valley.
According to the Chattanooga Times Free Press, the reversal came September 28, just five days after state officials announced the property had been selected as the future home of the hospital. The state had already purchased the land following a search lasting more than three years.
State officials have not publicly provided a specific reason for abandoning the location.
The Department of General Services says it will continue working with the Tennessee Department of Mental Health and Substance Abuse Services, along with state and local leaders, to identify another suitable location.
The Birmingham Highway property was selected after officials considered 127 possible sites across nine East Tennessee counties. The proposed facility would accommodate up to 200 patients and replace the existing hospital, which has operated on Moccasin Bend since 1961.
The state originally planned to construct the replacement hospital on the current Moccasin Bend property. However, those plans were abandoned in 2024 after an archaeological investigation uncovered significant prehistoric artifacts, raising concerns about disturbing historically important land.
Other potential locations in the Chattanooga area and surrounding counties have also faced opposition from nearby residents and local officials.
The project remains a significant investment in mental health services across East Tennessee, which is also beneficial for mental health needs for those in the Sequatchie Valley.
Moccasin Bend Mental Health Institute currently serves 52 Tennessee counties, including Marion, Sequatchie, Bledsoe, Grundy, Rhea, and Hamilton counties. The hospital operates 150 adult psychiatric beds and provides treatment for individuals experiencing serious mental health conditions, including those requiring emergency inpatient psychiatric care.
The Tennessee General Assembly approved $260 million for the replacement hospital in 2022. The proposed new facility would increase capacity by 50 beds while providing updated treatment and patient care facilities.
Before the latest reversal, the state anticipated completing the hospital’s design by the end of 2027, beginning construction in early 2028, and finishing construction approximately two and a half years later.
It remains unclear how the renewed search for a location will affect that timeline or what the state intends to do with the Birmingham Highway property.
For now, the existing Moccasin Bend Mental Health Institute will continue serving patients while officials determine where its replacement will eventually be built.
