New York State will pay $7 million to a company that will run a $1.3 billion psychiatric hospital for a new state initiative.
The project, to be financed by a state grant and a partnership between a nonprofit and a private company, will be called the New York Psychiatric Services.
The state is also making a $200 million contribution.
New York State already has a number of mental health programs, including the state-run Center for Mental Health Services and the New England Psychiatric Network.
The New York plan will be the first to be fully funded by a federal program and will also include new programs for the treatment of alcohol and drug abuse, mental health and substance abuse disorders, as well as chronic diseases such as diabetes and cardiovascular disease.
State Sen. Joseph Crowley, D-Bronx, said he hopes the new initiative will lead to better access to mental health services and the better treatment of people with mental illness.
The new initiative comes as New York faces growing concerns over a rise in suicides among young adults and a rise of homicides and shootings by the mentally ill.
Newly released data shows a surge in homicides in the state over the last two years, including four in the last five months.
The number of people killed by their partners or family members jumped more than 60 percent.
New Yorkers for Mental Recovery President Mark Schulte said he is worried the state has failed to provide mental health care to its people.