Oklahoma's New Mental Health Facility Hits Major Construction Budget Overrun
Oklahoma's new behavioral health center, the Donahue Behavioral Health Center, is facing a significant construction cost overrun due to several overlooked factors. The initial cost estimate of $150 million did not account for expenses like furniture, equipment, and the redesign of bathrooms, which must now be converted from hallways into individual rooms.
To complete the project, the Department of Mental Health and Substance Abuse Services has requested an additional $125 million. The center, located in Oklahoma City, was initially scheduled for completion by 2026, but that date may now be pushed back to 2028, according to Senator Chuck Hall, R-Perry, chairman of the Senate Appropriations Committee.
Hall attributed the cost increase to several factors, including inflation. When the project was first vetted in 2022, lawmakers anticipated making $50 million from the sale of land at the aging Griffin Memorial Hospital in Norman, but that estimate has now dropped to just $10 million due to weak demand and possible building remediation costs.
“The current commissioner is reporting to us that certification of the building might be in question,” Hall said, referring to concerns about the facility’s certification due to the bathroom redesign. “There are safety concerns and additional costs associated with having to take a client from their room to a hallway and back to their room and not be intrusive to the patient.”
Further complications arose because the agency, under previous leadership, did not include costs for furniture, fixtures, and equipment in the initial budget estimates. Mental Health Commissioner Allie Friesen, who took over in January, has been working to address these issues.
"A few months ago, we engaged a construction manager to review cost estimates and provide a more accurate price per square foot," said Mental Health spokeswoman Kelsey Davis. "Their analysis identified additional costs previously excluded from the initial estimates. This updated information has been submitted to legislators, and we await their guidance on the next steps."
Hall also mentioned that discussions about the funding gap have been ongoing, with lawmakers continuing to review the situation. “They’re in a bad place, too,” Hall said, referring to the Department of Mental Health. "They really can’t do any engineering for any of these changes until the Legislature decides what the plans are related to filling the funding gap."
In 2022, the Legislature committed $87 million in federal pandemic relief funds to the Donahue project, with the remainder of the funding expected from the sale of land at Griffin. The 200,000-square-foot facility was set to replace the Griffin Memorial Hospital, which dates back to the 1890s, and provide beds for 275 adults and 55 adolescents. However, due to the bathroom redesign, the number of available beds may be reduced slightly.
Speaker-Elect Kyle Hilbert, R-Bristow, acknowledged the ongoing discussions about the funding gap. “Increasing mental health capacity in our state has been a priority for the House, and we are working diligently with the Senate and the Department of Mental to understand what is needed in order to do that,” Hilbert said in a written statement.
With the delayed opening of the Donahue Center, Hall expects the Department of Mental Health to continue utilizing Griffin Memorial Hospital in Norman for the time being. He also noted that temporary, contract-based private treatment beds may be needed.
“We want to bring these beds online as soon as possible,” Hall said of the Donahue project. “We want to be responsive to the need, but I can’t unilaterally make a decision to fill a funding gap without running it through the legislative process.”
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