In 1938-39 the Neuropsychiatric Institute was built as an additional wing directly behind the Surgical Wing of University Hospital. It is connected with the Hospital by the use of corridors on each floor. The building stands on a sharp decline and is only five stories high, so that it is lower than the Hospital proper. Funds for this building were first provided by the legislature in 1929, in the so-called Hartman Act, when a total of $330,000 was appropriated, but this sum was never made available. Some years later, in 1937, $400,000 was again appropriated, and with this fund, plus an additional sum of $56,000 from the University Hospital Fund, the Institute was built.
The Neuropsychiatric Institute contains approximately eighty-five beds, of which one-third are for adolescents for whom a part of the second floor is reserved. The sub-subbasement contains rooms for physiotherapy and hydrotherapy equipment as well as a gymnasium. The subbasement floor is mainly for the work in occupational therapy; a lecture room seating 140 persons can be used for recreation and entertainment, and there is also a neuropathological laboratory. The basement and ground floors are used for the care and treatment of additional patients, while the first floor houses the offices of the outpatient department. The architect of the Institute was Albert Kahn, designer of the main Hospital, and the contractor for the erection of the building was Jerome A. Utley, of Detroit. This building is 212 feet by 53 feet, with a total floor area of 65,830 square feet.