Atrium Health is investing $340 million over five years to expand behavioral healthcare across the Charlotte region and surrounding communities, including plans for a new hospital location in north Charlotte.

Announced Oct. 15, the investment aims to increase treatment capacity, improve access to mental health and substance use services, and strengthen the behavioral healthcare workforce. The initiative will serve patients across a broad region, from York County, South Carolina, to North Carolina’s Triad region.

The centerpiece is a dedicated behavioral health hospital in the University City area near Mallard Creek. Atrium Health plans to renovate an existing building to create a 168-bed facility for pediatric and adult patients, adding a net 102 inpatient beds to the community. The health system expects the facility to open in 2028, 12 to 18 months sooner than would be possible with new construction.

The expanded services will include specialized inpatient treatment, outpatient therapy, medication management and intensive treatment programs. The investment also includes a new behavioral health emergency department and an expanded crisis stabilization unit for people experiencing acute mental health or substance use crises.

The expansion comes as demand for behavioral healthcare continues to rise. Atrium Health reported a 13% increase in behavioral health-related emergency department visits over the past six years. In 2025, pediatric patients accounted for 26% of those visits. The health system also provided inpatient behavioral healthcare to nearly 2,000 pediatric patients and outpatient services to nearly 20,000 pediatric patients last year.

Once operational, the new hospital is expected to support an additional 35,000 inpatient days of care annually. Expanded outpatient clinics are projected to accommodate more than 19,500 additional visits each year, helping improve access and reduce wait times for non-emergency appointments.

Beyond the new facility, the investment will support community-based programs, virtual care and clinical training. Atrium Health plans to expand initiatives such as Wellness Without Walls, a street psychiatry program, and build on school-based therapy services that have reached nearly 250 North Carolina schools and delivered more than 50,000 visits since 2021. Workforce development efforts include expanded psychiatry training, adolescent psychiatry fellowship opportunities and a planned addiction fellowship.

“This $340 million investment reflects our conviction that mental health deserves the same level of care, expertise and focus as any other aspect of healthcare,” said Eugene A. Woods, CEO of Advocate Health, Atrium Health’s parent organization.

The commitment builds on Atrium Health’s role as the Charlotte region’s behavioral health safety-net provider for nearly 40 years. It also complements Advocate Health’s broader investment plans, which include more than $10 billion in planned investments over the next five years.

Source: Atrium Health.

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