I'm sad to say I hadn't thought enough about the negatives of grouping people with mental health problems in institutions, and it is quite obvious that it's not going to be particularly helpful for healing and recovery.
I think {at least in the UK} there's been an attempt to prioritize "care in the community" and avoid institutionalization... but I suspect it is in good part a money saving exercise and I know for sure that the care is seriously lacking.
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