Providence Partnership Receives Approval for New Psychiatric Hospital in Thurston County

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Olympia Behavioral Health, a partnership between Providence St. Peter Hospital and Fairfax Behavioral Health, is embarking on a project to build a new 85-bed psychiatric hospital in Lacey. 

“This will just be great for the entire five-county service area of Southwest Washington,” said Chris Thomas, senior manager of communications with Providence Health & Services. “Yes the hospital will be built in Thurston County but there will be more opportunity for folks to get service in Southwest Washington.”

On Dec. 11, Olympia Behavioral Health, US HealthVest and the Washington state Department of Health signed a three-party settlement agreement to address the need for inpatient psychiatric beds in and around Thurston County.

This week, Olympia Behavioral Health received conditional approval from the Department of Health to build an 85-bed psychiatric hospital, according to a news release from Providence and Fairfax. 

“On behalf of Olympia Behavioral Health, the Providence/Fairfax partnership, we fully intend to move forward as soon as we fulfill the next step which is the land use permits from the City of Lacey,” Thomas said. 

The settlement will allow both Olympia Behavioral Health and U.S. HealthVest to establish and operate inpatient psychiatric hospitals in Thurston County, both of which could provide care for involuntary patients. 

“Thank you to our community and partners who have remained committed to the Providence and Fairfax Mission through this journey,” said Medrice Coluccio, chief executive for Providence in Southwest Washington, in a statement. “This settlement agreement represents a pivotal milestone, reaching consensus about how best to address the unmet needs of patients and families in our community who need mental health care.”



The OBH facility will serve voluntary and involuntary patients five years old and older. 

Fairfax Behavioral Health has been in the Pacific Northwest for 87 years. It operates facilities in Kirkland, Everett and Monroe with a total of 221 psychiatric and substance abuse beds, making it the largest provider of inpatient psychiatric services in the Pacific Northwest.

“Fairfax has been a leader in providing behavioral health services to the community for more than 87 years,” said Fairfax Chief Executive Officer Ron Escarda. “With that strength and depth of experience, we are excited to pair with Providence’s strong presence and commitment to the communities they serve.”