The Tennessee Health Services and Development Agency has approved Chattanooga, Tenn.-based ErlangerHospital's proposal to build a $25 million, 88-bed mental health hospital, according to the Times Free Press.
The state agency must approve any significant medical facility additions or expansions. Members of the agency unanimously approved Erlanger's proposed plan in a 9-0 vote after two hours of deliberation.
ParkridgeHospital, also located in Chattanooga, opposed Erlanger's proposal, a joint venture with Nashville-based Acadia Healthcare. Parkridge currently operates two of the largest mental health facilities in the region. Parkridge officials argued another mental health hospital was not needed.
Erlanger's proposal would designate 24 beds for geriatric patients, 24 for adults and 18 for children and adolescents, as well as 22 for adult substance abuse patients, according to the report.