YELLOWSTONE COUNTY — The Montana Department of Public Health and Human Services (DPHHS) announced Friday that Laurel will be the new site of the new 32-bed state mental hospital, a decision that has left multiple counties surprised.

The $26.5 million facility was approved by the 2025 Montana Legislature with the goal of boosting care for the eastern part of the state. Montana has one state mental-health hospital in Warm Springs, which is near Anaconda.

Custer and Big Horn counties actively pursued the facility and submitted formal proposals to the state. Laurel, however, showed little interest in the project and did not submit a formal proposal.

Watch county officials talk about the location for state mental hospital: Other counties surprised by Laurel's selection for new state men

See Full Page