Ragged Claws, I remember a similar case, though I can't remember the name either. I work in the mental health field, but not in an institution. While there certainly are and were documented cases of abuse and downright stupidity on the parts of the institutions, the pendulum has swung too far the other way. In the late 70's and early 90's, many institutions were closed and the patients were released into community based programs. While this was appropriate for some, for others it was a bad choice. The jail system has seen a huge rise in the number of mentally ill inmates. I am not talking about people that are pretending to be "nuts," thinking they will get away with it, I am talking about people that are seriously disturbed.
Today, if you walked into an ER and said you were hearing voices, you would receive a brief assessment. If you didn't articulate some threat or suicidal ideation, you would likely be encouraged to go see a doctor on your own. If you were really acting out, you might be hospitalized for a week or so, pumped full of anti-psychotics, and set loose.