
Deinstitutionalization is the process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder or developmental disability. The movement, which began in the 1950s, led to the closure of many psychiatric hospitals as patients were increasingly cared for at home, in halfway houses, group homes, and clinics. The development of community-based mental health services did not keep pace with the rate of deinstitutionalization, and the promised network of comprehensive community mental health centers never fully materialized. By 1980, the number of patients in state mental hospitals had dropped from 560,000 in 1955 to about 130,000, and today it is estimated that fewer than 50,000 individuals reside in state psychiatric hospitals.
| Characteristics | Values |
|---|---|
| Start of deinstitutionalization | 1955 |
| First wave target | People with mental illness |
| Second wave target | Individuals with developmental disabilities |
| First wave cause | Introduction of chlorpromazine, the first effective antipsychotic medication |
| Second wave cause | Enactment of federal Medicaid and Medicare |
| Number of patients in state mental hospitals in 1955 | 560,000 |
| Number of patients in state mental hospitals in 1980 | 130,000 |
| Number of patients in state mental hospitals today | Fewer than 50,000 |
| Location | United States, United Kingdom |
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What You'll Learn

The introduction of psychiatric drugs
Deinstitutionalization is the process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder or developmental disability. The movement towards deinstitutionalization was driven by various factors, including the introduction of psychiatric drugs, which played a crucial role in enabling patients to live outside of institutions.
The incorporation of these psychiatric medications into treatment regimens brought about a paradigm shift in the approach to mental healthcare. No longer were patients solely dependent on long-term institutionalization; instead, they could be effectively managed through community-based care and partial hospitalization programs. These programs allowed individuals to receive treatment while still maintaining their familial and social roles, promoting smoother transitions back into community life. The success of these alternative treatment models further bolstered the case for deinstitutionalization.
While the introduction of psychiatric drugs was a pivotal factor in deinstitutionalization, it is important to recognize the multifaceted nature of this societal shift. Other factors, such as socio-political campaigns for better patient treatment, criticisms of public mental hospitals, shifts in public perception, and financial considerations, also played significant roles in driving the movement towards deinstitutionalization.
The impact of deinstitutionalization was far-reaching, leading to the closure of many psychiatric hospitals and a reduction in the number of inpatient hospitalizations. However, it is worth noting that the process of deinstitutionalization has been the subject of debate, with critics arguing that it may have contributed to an increase in homelessness and the use of jail detention for individuals with mental disorders. Nonetheless, the introduction of psychiatric drugs and the subsequent deinstitutionalization movement had a profound impact on the landscape of mental healthcare, reshaping the way individuals with mental illnesses are treated and cared for within society.
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Financial incentives
Deinstitutionalization is the process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder or developmental disability. The movement, which gained momentum in the 1950s, led to the closure of many psychiatric hospitals as patients were increasingly cared for in halfway houses, group homes, clinics, and regular hospitals, or not at all.
There were several factors that led to the widespread adoption of deinstitutionalization. One of the most significant factors was the introduction of new psychiatric drugs that could manage psychotic episodes and reduce the need for patients to be confined and restrained. This made it far cheaper to care for mental health patients and increased the profitability of drugs. The 1965 amendments to Social Security, which shifted about 50% of mental healthcare costs from states to the federal government, also incentivized the government to promote deinstitutionalization.
The introduction of Medicaid further incentivized states to close their larger mental hospitals. A provision of Medicaid prohibited reimbursement to states for mental illness treatment in facilities that had more than sixteen beds. This incentivized states to offer treatment in community outpatient settings, which were 50% reimbursable under Medicaid. Additionally, as hospitalization costs increased, both federal and state governments were motivated to find less expensive alternatives.
The shift towards deinstitutionalization was also influenced by the belief that mental hospitals were cruel and inhumane, and the hope that new antipsychotic medications offered a cure. Community-based alternatives, such as partial hospitalization programs, allowed for a smoother and less expensive transition between inpatient hospitalization and community life. These programs provided less than 24 hours per day of treatment, with patients commuting to the hospital or treatment center while residing in their normal residences when not attending the program.
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Criticisms of public mental hospitals
Deinstitutionalization is the process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder or developmental disability. The movement gained momentum in the 1950s and 1960s, leading to the closure of many psychiatric hospitals. This shift was driven by various factors, including the introduction of psychiatric drugs, financial incentives, changing public attitudes, and campaigns for better patient treatment.
While deinstitutionalization aimed to improve the lives of those with mental illnesses, it has also faced several criticisms and led to new challenges. Here are some of the criticisms and issues associated with the closure of public mental hospitals:
- Social Isolation and Stigma: Critics argue that transferring patients from hospitals to community services can lead to social isolation. While individuals may have frequent contact with other service users, their interaction with the wider community may decrease. This can hinder their integration into society and potentially reinforce stigma.
- Inadequate Community Services: The closure of public mental hospitals placed significant pressure on community services, which often struggled to handle the influx of new patients. These services were often underfunded and ill-equipped to meet the diverse needs of individuals with severe mental illnesses. This resulted in a lack of adequate care for some patients, contributing to homelessness and other negative outcomes.
- Homelessness and Incarceration: Critics argue that deinstitutionalization has led to an increase in homelessness and incarceration rates among individuals with mental illnesses. With reduced access to inpatient hospitalization, some individuals struggled to find stable housing or fell through the cracks of the system, ending up on the streets. This vulnerability has made them more susceptible to victimization and involvement with the criminal justice system.
- Resistance to Treatment: Some critics, like E. Fuller Torrey, defend the use of psychiatric institutions and argue that deinstitutionalization has made individuals with mental illnesses more resistant to seeking and receiving medical help. They attribute this resistance to the nature of their conditions and the lack of structured inpatient care.
- Incomplete Community Integration: While community-based care aims to integrate individuals with mental illnesses into society, critics argue that it can lead to the creation of closed social circles or "psychiatric communities." This limited interaction with the broader community may hinder full social integration and perpetuate the separation of individuals with mental health issues from the rest of society.
- Inadequate Funding and Support: Deinstitutionalization was partially driven by financial incentives, aiming to reduce the costs of mental health care. However, critics argue that the subsequent community services and outpatient programs have been chronically underfunded, leading to a lack of resources and inadequate support for individuals with mental illnesses.
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Changes in public perception
Deinstitutionalization is a process that replaces long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with mental disorders or developmental disabilities. This process began in the 1950s and led to the closure of many psychiatric hospitals as patients began to be cared for in their homes, halfway houses, group homes, and clinics, or not at all.
There were several factors that led to the adoption of deinstitutionalization. One of the most important factors was the changing public attitudes towards mental health and mental hospitals. The public increasingly viewed mental hospitals as oppressive and prison-like, with punitive rules. This shift in public perception was influenced by several socio-political campaigns for the better treatment of patients, spurred on by institutional abuse scandals in the 1960s and 1970s, such as the Willowbrook State School in the United States and the Ely Hospital in the United Kingdom. These scandals brought to light the cruel and inhumane treatment of patients in mental institutions, leading to increased criticism of public mental hospitals.
The introduction of psychiatric drugs in the mid-20th century also played a significant role in changing public attitudes. The development of chlorpromazine, commonly known as Thorazine, the first effective antipsychotic medication, in 1955, made it more feasible to release people into the community. This was further accelerated by the discovery and incorporation of new mind-altering drugs into treatment in the 1960s and 1970s, which offered hope for a cure. Additionally, as hospitalization costs increased, governments were motivated to find less expensive alternatives, and community-based care was argued to be a cheaper option.
The shift towards deinstitutionalization was also influenced by the Civil Rights Movement, which advocated for the inclusion of marginalized groups in mainstream society. This included individuals with mental illnesses, who were often confined to institutions. President John F. Kennedy's interest in mental health issues, due to his sister's personal experience with lobotomy, also contributed to the growing support for federal policy changes. Internationally, Italy was the first country to implement deinstitutionalization and served as a model for other countries.
While deinstitutionalization aimed to reduce patient dependency on psychiatric care, critics argue that it has led to social isolation for the mentally ill. The closure of mental hospitals has also resulted in a shortage of public beds for mentally ill persons, with some individuals being shifted from hospitals to jails and prisons. Additionally, community services have struggled to handle the influx of new populations, often lacking the necessary resources and support. Despite these challenges, deinstitutionalization continues, although the movements are growing smaller as fewer people are institutionalized.
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The closure of Willowbrook State School
Deinstitutionalization is the process of replacing long-stay psychiatric hospitals with less isolated community mental health services for those diagnosed with a mental disorder or developmental disability. The United States has experienced two waves of deinstitutionalization. The first wave began in the 1950s, targeting people with mental illnesses, and the second wave began 15 years later, focusing on individuals diagnosed with developmental disabilities.
The Willowbrook State School was a state-supported institution for children with intellectual disabilities in the Willowbrook neighborhood of Staten Island, New York City. It operated from 1947 or 1948 until its closure in 1987. The school was designed for 4,000 people, but by 1965, it had a population of 6,000, making it the biggest state-run institution for people with mental disabilities in the United States. Overcrowding led to crowded and filthy living conditions, and during its first decade of operation, outbreaks of hepatitis, primarily hepatitis A, were common.
The institution gained national infamy in 1972 due to an exposé by Geraldo Rivera, an investigative reporter for WABC-TV in New York, which uncovered deplorable conditions, including overcrowding, dangerous conditions, and regular abuse of residents. Public outcry led to its closure in 1987.
In 1975, a consent judgment was signed, committing New York state to improve community placement for the "Willowbrook Class." This set in motion the eventual closure of the school and the development of community-based services. It mandated a reduction from 6,000 to 250 residents by 1981. The closure of Willowbrook State School symbolized the success of New York State's commitment to providing extensive and comprehensive community living opportunities for its citizens with mental retardation and developmental disabilities.
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Frequently asked questions
Hundreds of thousands of patients were released from mental hospitals during the deinstitutionalization movement, causing hundreds of thousands of hospitals to close.
Deinstitutionalization began in the 1950s and 1960s, with the introduction of psychiatric drugs and community-based care.
The impact of deinstitutionalization was that many people with mental illnesses ended up on the streets or in jails and prisons, which were not equipped to provide adequate care.



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