Construction is progressing on the transformation of a former hospital into the Nebraska Panhandle Counseling Center in Kimball, a project aimed at expanding access to behavioral health services across the region.
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Located at 505 S. Burg St., the redevelopment involves repurposing the former Kimball Hospital into a modern counseling and crisis care facility. Local officials and project leaders say the initiative addresses a pressing shortage of mental health resources in Nebraska’s Panhandle region.
Carl Stander, a former county commissioner and liaison for the project, emphasized the need for the facility during a recent public tour. “The Panhandle Region has the highest suicide rate in the state of Nebraska, and the reason, I think, is we don’t have the resources,” he said. “Once this center is open, the next closest center like it in Nebraska is in Grand Island, and that is too far.”
The project is being developed through a partnership between Central Wyoming Counseling Center and Region 1 Behavioral Health, with construction led by Hays Contracting LLC. Demolition work began earlier this year, marking the first phase of redevelopment.
The project will be delivered in two primary phases. Phase One focuses on establishing a Crisis Center, while Phase Two will add Transitional Living spaces for patients requiring extended support.
“If there is a patient who let's say has been in the crisis center for 7-8 days, but they aren’t quite ready to go home or they don’t have a place to go, they can move to this Transitional Living space,” Stander said.
The facility is designed to include a combination of patient rooms, therapy areas, counseling offices and shared spaces. Initial plans call for 5-6 adolescent rooms and 10-12 adult rooms, with the ability to expand capacity as demand grows.
“It will be an evolving building as we go,” Stander said. “There could be rooms that we can convert to patient rooms if we need to expand.”
Adolescent and adult populations will be housed separately, with operational protocols in place to ensure no interaction between the two groups during activities such as outdoor recreation.
In addition to clinical spaces, the center will incorporate a range of amenities designed to support patient recovery and staff operations. Planned features include day rooms equipped with seating, televisions and recreational options such as pool or foosball tables. Outdoor areas will be developed from the former hospital parking lot into a fenced courtyard with benches, a basketball court and potentially a walking track.
The project also addresses workforce challenges common in rural healthcare construction. Former operating rooms are being converted into living quarters for providers, complete with private bathrooms, shared kitchen facilities and a workout space.
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Project leaders noted that staffing will likely require recruitment beyond the immediate community. The facility will support extended nursing shifts by offering on-site accommodations, allowing staff to rest between consecutive work periods. A dedicated lounge for law enforcement and emergency personnel is also included in the design.
Funding for the project includes $3.8 million secured by Region 1 Behavioral Health from Nebraska’s share of the National Opioid Settlement funds, underscoring the project’s role in addressing substance use and mental health challenges.
Construction is expected to continue through 2026, with the counseling center projected to open in early 2027. Once complete, the facility is anticipated to significantly improve access to crisis care and behavioral health services across western Nebraska, reducing travel distances for patients and strengthening regional healthcare infrastructure.
Originally reported by Kristi Shields in News Channel Nebraska.
