Expanding Inpatient Psychiatric Capacity (Round 2)

The New York State Office of Mental Health (OMH) has released a Request for Proposals (RFP) for Round 2 of the "Capital for Expanding Inpatient Psychiatric Capacity" initiative, aiming to distribute $20 million in capital funds to improve and expand inpatient psychiatric services statewide. The primary goal is to address ongoing capacity shortages and ensure timely access to high-quality, evidence-based care for individuals with acute mental health needs. This includes the development or enhancement of inpatient psychiatric units for children, adolescents, and adults, with dedicated focus areas for individuals who are dually diagnosed with mental health and intellectual or developmental disabilities (I/DD). The RFP supports facility acquisition, new construction, and rehabilitation projects that align with OMH’s licensing and regulatory standards. OMH seeks proposals from eligible healthcare providers committed to enhancing the quality, accessibility, and equity of psychiatric inpatient services. These projects are intended to reduce emergency department boarding, improve patient flow, and allow hospitals to provide patient-centered, trauma-informed, and culturally competent care. Proposals may include building new inpatient units, expanding capacity in existing facilities, or undertaking renovations that improve the therapeutic environment—such as increasing outdoor space, improving lighting, or expanding group therapy areas. The RFP outlines that these capital improvements must directly support the care environment, comply with applicable OMH regulations (14 NYCRR 580 or 582), and be aligned with evidence-based care models. Eligibility for this funding opportunity is limited to New York State Article 28 licensed general hospitals and Article 31 licensed psychiatric hospitals that are public, county-operated, government entities, or not-for-profit 501(c)(3) organizations. Applicants must be in good standing with OMH and currently operate programs licensed or certified by OMH. All not-for-profit applicants must complete the Statewide Financial System (SFS) vendor registration and prequalification process prior to submitting a proposal. Projects must be submitted through the SFS portal, and no other submission formats are accepted. A full capital budget and supporting documentation must be uploaded as part of the submission. Proposals are evaluated through a dual-stage process comprising a technical evaluation and financial assessment. Applications are scored across eight categories, including program description, implementation, population served, and capital use. A minimum score of 70 is required for consideration. Funding is prioritized for the creation of new inpatient units—especially those serving dually diagnosed individuals—followed by expansion of existing capacity and milieu improvements. Milieu renovation proposals can request up to $750,000, while awards for new units may reach up to $7 million depending on population served. For expansions, funding is set at $250,000 per additional bed with a minimum of four beds. The application timeline for this RFP begins with the release date on January 6, 2026. All questions must be submitted by January 28, 2026, and responses will be posted by February 18, 2026. The final application deadline is March 11, 2026, at 2:00 PM EST. Awards are anticipated to be announced by April 14, 2026, with project contracts commencing on July 1, 2026. This RFP is not a recurring opportunity and does not require any matching funds. For any inquiries, applicants must contact Carol Swiderski, the designated issuing officer, at [email protected].

Submit early to avoid disqualification from file upload issues; strictly follow naming and format rules in SFS submissions.