Mat-Su Regional Medical Center Seeks State Approval for Behavioral Health Hospital
7/11/2025
Freestanding 45-bed facility would expand mental health care locally and ease ER strain
PALMER, Alaska (July 10, 2025)—Mat-Su Regional Medical Center (MSRMC), in partnership with the Mat-Su Health Foundation (MSHF), has filed a Certificate of Need (CON) application with the State of Alaska to build a freestanding behavioral health hospital in Palmer.
The proposed facility aims to address Alaska's growing mental health crisis by expanding timely, trauma-informed care in the Mat-Su Valley. Trauma-informed care is an evidence-based approach that recognizes the lasting effects of trauma and integrates this understanding into treatment to improve patient outcomes.
The 45-bed facility—planned for a 10-acre site east of the hospital's main campus—would provide inpatient behavioral health care for both adults and adolescents. The application includes the relocation of 16 existing bed licenses from MSRMC and would ultimately expand regional behavioral health capacity.
"People experiencing a mental health crisis often end up in the emergency department, but we're not always equipped to provide the specialized care they may need," said Dr. Thomas Quimby, Medical Director of the Emergency Department at MSRMC. "With too few inpatient behavioral health beds in Alaska, patients can wait for days or be transferred far from home. This new facility would offer more timely, appropriate care right here in our community."
Since opening its inpatient behavioral health unit in 2020, MSRMC has seen demand dramatically outpace capacity. In 2024 alone, the hospital received 1,253 behavioral health referrals but was only able to admit 437 patients due to limited bed availability in its behavioral health unit.
Statewide, more than 132,000 adults in Alaska live with a mental health condition, and suicide rates remain among the highest in the nation—particularly for teens and young adults.
"Too often, patients in the Valley who need inpatient behavioral health care must travel to Anchorage or even out of state for help," said James Bunch, Interim CEO of Mat-Su Regional Medical Center. "This facility is about responding to a demonstrated need we see for our community—local care when it's needed most."
If the state approves the project, construction could begin as early as 2026, with the facility expected to open within 24 to 36 months. The estimated $70 million project would create about 50 full-time, living-wage jobs.
"This is a community-driven solution, grounded in data and years of preparation," said Esther Pitts, President and CEO of the Mat-Su Health Foundation. "We're proud to invest in behavioral health infrastructure that reflects our region's values—and honors the many voices that have called for better care."
The Mat-Su Health Foundation owns the proposed location for the facility at 1790 S. Woodworth Loop, which is east of MSRMC. The site's proximity to the hospital would enable integrated emergency and medical services, ensuring patients receive coordinated support across various care settings.
Public support is a crucial component of the state's Certificate of Need (CON) process. Community members are encouraged to submit letters of support and share their experiences to help demonstrate the project's urgency and value.
To learn more or submit a letter of support, visit www.LookForwardMat-Su.com.
Proposed Project Highlights
- Facility: Freestanding Behavioral Health Hospital (official name TBD)
- Location: 1790 S. Woodworth Loop, Palmer, AK (adjacent to MSRMC campus)
- Project Partners: Mat-Su Regional Medical Center (MSRMC) & Mat-Su Health Foundation (MSHF)
- Beds: 45 total inpatient beds (27 for adults and 18 for adolescents; includes relocation of 16 existing beds from MSRMC's inpatient unit)
- Size: ~50,000 square feet on 10 acres
- Estimated Cost: $70 million
- Jobs Created: ~50 full-time equivalent positions
- Construction Timeline: Estimated completion within 24–36 months of CON approval
About Mat-Su Health Foundation
Mat-Su Health Foundation (MSHF) is the official business name of Valley Hospital Association, Inc., which shares ownership in Mat-Su Regional Medical Center. In this capacity, the MSHF board members and representatives actively participate in the governance of Mat-Su's community hospital and protect the community's interest in this important healthcare institution through board oversight. The MSHF invests its assets into charitable works that improve the health and wellness of Alaskans living in Mat-Su. More information is available at www.healthymatsu.org.
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