Moccasin Bend Mental Health Institute will relocate to Birmingham Highway in Chattanooga, with plans to open in approximately 2030. State officials announced that the new facility will occupy a 49-acre site in the Lookout Valley area, near Interstate 24 and just a few miles from the current location at 100 Moccasin Bend Rd.

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The new institute will have a capacity of up to 200 beds, which is an increase of 50 beds compared to the existing site. The design process is expected to continue through 2027, with construction projected to begin in early 2028 and take about two and a half years to complete.

This move follows a lengthy site search by the Tennessee Department of Mental Health and Substance Abuse Services and the Department of General Services, which lasted over three years. The project is anticipated to remain within the $260 million budget allocated by the Tennessee General Assembly in 2022. The State Building Commission Executive Subcommittee approved the purchase of the Birmingham Highway property in August 2026, with the transaction finalized in September.

Deputy Commissioner John Hull of Tennessee’s Department of General Services stated that the architectural planning has commenced and a contractor will be selected thereafter. Hull estimated that the facility could be completed by the summer of 2030.

Chattanooga Mayor Tim Kelly welcomed the announcement, emphasizing the importance of continuity in compassionate care and the employment opportunities a modern facility could provide. He also expressed hope for the preservation of the existing Moccasin Bend site as a historic public park.

Currently, the Moccasin Bend Mental Health Institute serves 52 counties in East Tennessee and has 150 adult psychiatric beds. Founded in 1961, it provides care primarily for patients with severe and persistent mental illness, many of whom are hospitalized involuntarily during crises. CEO Mary Young noted that the old facility is inadequate for the needs of patients and staff.

The decision to relocate follows a 2024 investigation that found the current site is limited in potential for expansion due to the presence of buried historic materials. Hamilton County Mayor Weston Wamp highlighted the dual significance of the relocation for both the hospital’s operation and the preservation of Moccasin Bend as part of the National Park System.

However, concerns have been raised by local officials regarding community involvement in the decision-making process. Chattanooga City Council Member Chip Henderson expressed disappointment about the lack of transparency and community engagement regarding the project. Hamilton County Commissioner Montrell Besley echoed these sentiments, urging for meetings with local residents to address their concerns.

As of now, no meetings have been scheduled for the Lookout Valley community regarding the new facility and the plans surrounding it.