UT Southwestern Poised to Operate New Psychiatric Hospital in Dallas

UT Southwestern Medical Center (UTSW) is positioned to take over operations of the new psychiatric hospital in Dallas, Texas, following a competitive bidding process. State leaders recognized the importance of this project, given its significant financial implications. The urgency to finalize operations is heightened by the need for psychiatric beds in the area, which are desperately required.

Earlier this year, the state unexpectedly altered its original plan to have UTSW manage the facility, which was initially funded and overseen by the state. This decision opened the field to outside bidders, prompting a new round of proposals. In 2021, the Texas legislature allocated $384 million for the Dallas hospital, which included funding for UTSW’s management. An additional $261 million was contributed by Children’s Health for the construction of a pediatric wing.

As the deadline for proposals approached on November 18, 2023, three organizations submitted bids. While UTSW has demonstrated comprehensive readiness to operate the entire hospital, only one of the other bidders, Recovery Solutions, expressed interest in managing the adult wing. The third applicant, Desiree Williams Consulting, sought to act as a subcontractor rather than take on operational responsibilities.

With the facility located at Harry Hines Boulevard and Medical Center Parkway nearing completion, state officials anticipate staffing could begin as early as January 2024. The adult wing is almost finished, while the children’s wing is expected to follow in the spring. UTSW estimates that once a contract is awarded and funding is released, it would take approximately eight months to ramp up operations and begin admitting patients.

UTSW has been intimately involved in the design and planning stages of the hospital, which raises concerns about the potential disruption of restarting the process with a different operator. Although re-evaluating options can be beneficial, the absence of superior alternatives suggests that UTSW remains the most viable operator.

The competitive bid process has fulfilled its purpose by ensuring that all potential operators were considered. Nonetheless, given the facility’s imminent completion and the significant demand for psychiatric services, the choice is clear. UTSW stands ready to facilitate the urgent need for these beds, making it the best candidate to manage this critical healthcare facility.