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Cogesoa Resarc SenUe


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                                                                                            Updated  June 26, 2018

Psychiatric Institutionalization and Deinstitutionalization


The history of mental health care in the United States can
be understood as a period of institutionalization followed by
one of deinstitutionalization. Federal law, however, has not
been fully aligned toward either institutional care or
community-based  (i.e., noninstitutional) care.

Institutionalization
The early U.S. health care system offered little treatment
for mental illness. People with serious mental health
conditions often ended up in prisons or shelters for the
poor. Few privately or publicly funded asylums had been
established by the mid-19th century, when state psychiatric
hospitals began to grow in number and size. Institutional
mental health care was viewed as a state responsibility and
was not funded by the federal government. Community-
based (i.e., noninstitutional) mental health care was mostly
unavailable.

Even as institutionalization was on the rise, the foundations
for its decline were emerging in the form of perceived
problems with institutional care and benefits of community-
based care. Stories of poor living conditions in psychiatric
hospitals raised concerns about the well-being of their
patients. During World War II, psychiatrists began to
forego or shorten hospitalizations as they learned that
patients fared better when rapidly reintegrated into their
social milieu. Approval of the first antipsychotic medication
(chlorpromazine) in the 1950s made community-based
treatment of mental illness seem more feasible. These
developments set the stage for the decline of the asylum.

Dei  nstituti onal  ization
The number  of beds in state and county psychiatric
hospitals declined by more than 90% from 1955 to 2005
(per HHS Publication SMA  09-4424). The shift from
institutional care to community-based care was influenced
by several social movements (see Table 1) and
developments in two areas of federal policy (see Figure 1):
grants supporting community-based services and Medicaid
coverage for Medicaid-eligible residents of institutions for
mental disease (IMDs).

Also of note, a 1999 Supreme Court decision further
encouraged deinstitutionalization. Olmstead v. L. C.
involved two women  with mental illness and developmental
disabilities, each of whom remained confined in the
psychiatric unit of a state hospital for several years after
clinicians determined that her treatment needs could be met
by community-based  care. The Supreme Court held that
unjustified segregation of persons with disabilities violates
the Americans with Disabilities Act (P.L. 101-336) and that
public entities must provide community-based services to
persons with disabilities when such services (1) are
appropriate, (2) are acceptable to the affected persons, and
(3) can be reasonably accommodated.


Table  I. Social Movements  and Deinstitutionalization
The civil rights movement of the 1950s and I 960s advocated for
more humane  care than was being provided in mental
institutions.
The community mental health movement, which began in the I 960s,
supported community-based mental health programs, which later
narrowed their focus to individuals with long-term illnesses.
The evidence-based practice movement of the I 980s and I 990s
(with roots dating back to the I 960s) advocated the use of
treatments supported by research findings.
The recovery movement applied the principles of the consumer
movements  of the I 980s and 1990s to mental health care.
Sources: Testa and West, Civil Commitment in the United States,
Psychiatry, vol. 7, no. 10 (2010), pp. 30-40; and Drake and Latimer,
Lessons learned in developing community mental health care in
North America, World Psychiatry, vol. II, no. I (2012), pp. 47-51.

Recent Developments
Stakeholders continue to debate the best balance of
institutional and community-based services. Most agree that
the supply of psychiatric beds in hospitals is not adequate to
meet the demand for institutional care. Some argue for
more psychiatric beds to meet the demand; others argue for
more community-based  care to reduce demand for
psychiatric beds by preventing mental health crises.
Policymakers have pursued both paths-increasing options
for Medicaid coverage for residents of IMDs and creating
incentives for community-based mental health care.

*  The Demonstration Programs  to Improve Community
   Mental Health Services support participating states in
   certifying community behavioral health clinics meeting
   criteria related to quality of care; the demonstrations
   (which were authorized by P.L. 113-93) are underway.

*  In July 2015, the Centers for Medicare &Medicaid
   Services (CMS) informed states that they could pursue
   Section 1115 waivers to receive federal Medicaid
   payments for coverage of substance use services
   provided to nonelderly adults in IMDs.

*  In April 2016, CMS issued a rule that clarified a
   Medicaid managed  care option to fund behavioral health
   services in an IMD services with a 15-day per month
   limit.

*  The Helping Families in Mental Health Crisis Reform
   Act of 2016 (P.L. 114-255 Division B) reauthorized and
   modified many  grant programs that support community-
   based care; most are administered by the Substance
   Abuse  and Mental Health Services Administration
   (SAMHSA).


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