The CON is a state regulatory process designed to ensure new healthcare facilities meet community needs without duplicating services. Public support and input are critical components, and community members are encouraged to submit letters of support to demonstrate demand and urgency.
The new 45-bed freestanding behavioral health hospital is designed to expand access to inpatient mental health care in the Mat-Su Valley. It aims to provide timely, trauma-informed care locally to reduce the current strain on emergency departments and prevent patients from having to travel far from home for treatment.
Demand for inpatient behavioral health services has dramatically outpaced capacity at MSRMC. In 2024, we received 1,253 behavioral health referrals but could only admit 437 patients due to limited beds. Alaska faces a growing mental health crisis, with high suicide rates and many residents lacking timely access to care, especially adolescents and young adults.
The proposed hospital will be located at 1790 S. Woodworth Loop in Palmer, on a 10-acre site adjacent to the existing MSRMC campus, allowing for integrated emergency and medical services.
The facility will be licensed for 45 inpatient beds: 27 for adults and 18 for adolescents. This includes relocating 16 existing bed licenses currently at MSRMC to the new hospital.
The estimated cost is $70 million. The project is a collaboration between Mat-Su Regional Medical Center and the Mat-Su Health Foundation, with the foundation owning the proposed site.
MSRMC will operate the behavioral health hospital, providing primary mental health care and treatment, while the Mat-Su Health Foundation owns the property and supports the project through governance oversight and community investment. Together, they collaborate to meet community needs for access to high-quality care.
Construction could start as early as 2026, pending state approval of the Certificate of Need (CON). The facility is expected to open within 24 to 36 months after construction begins.
The hospital will expand local access to behavioral health care, help reduce wait times and help keep patients closer to home. It will also create about 50 full-time, living-wage jobs and strengthen the region's healthcare infrastructure.
Community members can submit letters of support and share personal stories at www.LookForwardMat-Su.com to help the state understand the need for the facility.
Yes, the facility will have 18 beds dedicated to adolescent patients, recognizing the particular need for mental health services among teens and young adults in our region.
The hospital will be a freestanding facility adjacent to MSRMC, allowing for coordinated care between emergency, medical, and behavioral health services, enhancing overall patient outcomes.
Without state approval, the expansion of inpatient behavioral health beds in the region would be delayed, continuing the current challenges of limited capacity and patients needing to travel far for care. MSRMC and Mat-Su Health Foundation remain committed to advocating for solutions to meet community needs.
By increasing inpatient bed capacity and providing local, specialized care, the project helps reduce barriers to treatment, decrease emergency department wait times, and improve health outcomes for people experiencing mental health crises in the Mat-Su Valley.
Be a part of our work to Look Forward - show decision-makers that our community backs this plan by writing a letter of support or sharing a story about how you or your loved one was impacted by having to seek mental health care outside of our community.
Draft a LetterGet email updates about public hearing opportunities and other key milestones in the project.
Sign-Up Now