House Bill 872 Commission Recommends State Hospital Modernization, IBC Relocation and Step‑down Facilities

The House Bill 872 commission outlined three preliminary tracks for capital investment aimed at expanding and improving behavioral‑health capacity in Montana: targeted modernization at the Montana State Hospital, relocation and redesign of the Intensive Behavioral Center (IBC) to a more populated area, and development of subacute “step‑down” behavioral health facilities to bridge inpatient and community care.

Commission overview and rationale Senator Boldman, who presented the summary on behalf of the commission, said the first track focuses on essential repairs and upgrades at the Montana State Hospital — generators, roofs, plant infrastructure, ancillary buildings and other facility improvements — to modernize operations and improve care and safety. The commission recommended completing architectural and engineering planning and prioritizing work that improves patient outcomes and staff safety.

The second track addresses the Intensive Behavioral Center in Boulder. The commission recommended exploring relocation of the IBC to a more populated setting (options mentioned included Helena or Butte) where workforce availability and access to community supports would be greater. Senator Boldman said the goal is “to provide high quality person centered, home like environments to promote skill development and support greater independence for clients.”

The third track proposes creating subacute or step‑down behavioral health facilities that would serve patients no longer needing acute hospitalization but not yet ready for lower‑intensity community placements. The commission suggested repurposing the Grasslands facility — currently used in part after earlier movements of patients off the Warm Springs campus — as a near‑term option while longer‑term siting and construction are studied. The step‑down model was pitched as a way to reduce repeated hospitalizations by providing intensive rehabilitation, community‑integration practice and shorter transitional stays.

Financing and process Director Mike Burton of DPHHS told the committee the commission’s work is preliminary and that the commission has not spent the $75 million previously authorized for House Bill 872 projects. He said, “We have not spent any of the 75,000,000 and ultimately wanted to bring this conversation to the 02/2025 legislature and have that with you before we proceed with anything of this magnitude.” Burton emphasized that the commission would need the governor’s approval to move forward on any specific capital track and that further design, cost estimating and public‑process steps would be required.

Questions and next steps Members asked about lease versus purchase options, timelines and workforce implications. Senator Boldman and department staff noted leasing or repurposing an existing building could deliver capacity faster than new construction, but that long‑term supply, workforce and program design still require detailed planning. The commission said it will refine cost estimates, consider siting alternatives and return recommendations under the formal House Bill 872 approval process.

Ending: the briefing closed with committee members asking for more detailed cost models and program plans. The House Bill 872 commission and DPHHS said they would circulate expanded materials and architectural/engineering attachments to committee staff for follow‑up.