Plans for a new behavioral health facility near Laurel

The city of Laurel, along with the Highway 212 bridge spanning the Yellowstone River, has been highlighted as a potential site for a new behavioral health facility, announced over the holiday weekend by the Montana Department of Health and Human Services (DPHHS).

During the 2025 legislative session, lawmakers approved $26.5 million for the construction of a 32-bed forensic mental health facility. DPHHS Director Charlie Brereton expressed appreciation to Laurels city officials, stating, We value the partnership with Laurels leadership in establishing this new behavioral health center. The city offers access to an essential health care workforce and infrastructure, ensuring the facilitys long-term success. Its central location also supports improved transportation for patients, families, staff, and law enforcement throughout eastern Montana.

The announcement followed a temporary pause by the Board of Investments, which is responsible for overseeing the construction. The Board had sought further clarification on the desired location and services for the facility. It will own the building as a state investment and lease it to DPHHS.

DPHHS highlighted that Laurel was chosen due to its workforce, infrastructure, and favorable geographic position that eases transportation logistics for patients and law enforcement across the eastern region of Montana. Brereton emphasized the increasing demand for forensic psychiatric services statewide, noting that the current waitlist is creating challenges for local communities. While operational adjustments have been made, bed capacity remains insufficient, and legislative funds must focus on the forensic population.

Despite the states announcement, an exact site has not yet been finalized. Laurel had not submitted a formal application because city officials felt available land within city limits was unsuitable. In a letter dated November 17, Chief Administrative Officer Kurt Markegard, alongside Mayor David Waggoner, suggested a location just outside city boundaries that could support a successful project. Annexation procedures would be required before the city could provide services to the site.

Board of Investments Executive Director Dan Villa confirmed that site selection is ongoing. He noted that a property near Laurel, but outside city limits, would likely initiate an annexation request.

There are concerns that the $26.5 million allocated by the legislature may not be sufficient to build a fully secure facility for the forensic population. Brereton stated that additional funds from the Behavioral Health Systems for Future Generations account, which holds nearly $42 million, could cover extra construction costs beyond the legislative appropriation.

Other locations under consideration include proposals from Custer County and Big Horn County, near Miles City and Hardin respectively.

Author's Analysis: Laurel Selected for Montana Forensic Mental Health Facility

The decision to highlight Laurel as a potential site for the new 32-bed forensic mental health facility reflects careful consideration of workforce availability, infrastructure, and geographic access. The Montana Department of Health and Human Services (DPHHS) emphasized that Laurel's location facilitates transportation for patients, families, staff, and law enforcement across eastern Montana, a critical factor given current service demand.

Funding remains a central concern. The legislature approved $26.5 million for construction, but experts acknowledge that this may not fully cover the costs of a secure facility designed for a forensic population. DPHHS has identified an additional nearly $42 million in the Behavioral Health Systems for Future Generations account to address potential shortfalls.

While Laurel is favored, a formal site has not been finalized. The city has suggested a location just outside city limits, which would require annexation before services could be provided. Other counties, including Custer and Big Horn, remain in consideration, highlighting that final decisions will balance cost, security, and accessibility.

In conclusion, the project underscores Montana’s growing need for forensic psychiatric services and the state’s strategy to leverage strategic locations and funding sources to expand capacity. Laurel's potential role illustrates a deliberate approach to meeting this need while addressing logistical and operational challenges.

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• New behavioral health facility planned near Laurel