State officials have selected Laurel to build a new 32-bed state mental health facility for eastern Montana.
The Montana Department of Health and Human Services announced Friday that the state's Office of Budget and Program Planning had accepted the plan, which was also developed by the state Board of Investments.
"Laurel provides access to a critical health care workforce and infrastructure necessary to ensure the facility's success. Laurel's geographic location is ideally situated for improving access and transportation logistics for patients and their families, staff, and law enforcement across central and eastern Montana," DPHHS Director Charlie Brereton said in a written statement.
Click to read this letter explaining the decision.
The $26.5 million facility was approved by the 2025 Montana Legislature with the goal of boosting care for the eastern part of the state. Montana has one state mental-health hospital in Warm Springs, which is near Anaconda.
State officials had looked at several communities to build the facility, including Billings, where the plan was met with opposition by city leaders.
Miles City and Hardin both submitted formal proposals and hosted state officials for site tours earlier this month, although state leaders emphasized Laurel remained in the running.
The state did not announce where in Laurel the hospital would be built. In late September, Laurel Mayor Dave Waggoner confirmed a piece of property on Old Highway 10 just outside of town was a possibility. Earlier in the fall, state officials also looked at land near the Laurel Airport north of town as a possibility.
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