The US used to have places to send those people. Santa Clara, CA had "The Great Asylum for the Insane".[1] Later "Agnews State Mental Hospital", then "Agnews Developmental Center", and finally demolished for a Sun Microsystems facility. It was the classic "funny farm" in a rural area, with impressive architecture.
This was the early 20th century solution to homeless crazies. Was it better than what we have now?
[1] https://en.wikipedia.org/wiki/Agnews_Developmental_Center