NASHVILLE – A state board has approved a request by Erlanger hospital to build a new $25 million, 88-bed mental health hospital at the corner of Holtzclaw and Citico avenues in Chattanooga.
By a 9-0 vote, members of the state Health Service and Development Agency approved the project after two hours of argument and discussion.
The state must approve any significant new medical facility and evaluates each proposal based on its need, its financial prospects, the quality of care provided by the proposal, and whether it contributes to the development of an orderly health care system.
Erlanger’s proposal, a joint venture with Nashville-based Acadia Healthcare, was opposed by representatives of Parkridge hospital, which operates two of the largest mental health facilities in the area, and from CADAS, the Council on Alcohol and Drug Abuse Services.
They argued the real need is not new beds but rather more staffing for existing beds.