Inpatient mental hospitals used to be in every state. They housed not only the mentally ill but also the chronically homeless and other outcasts. As the advent of antipsychotics and antidepressants reduced their population, these hospitals were an obvious target for budget cuts throughout the 80s and 90s. They money for the community health centers that were supposed to replace them never materialized, and thousands of patients were left without access to their medication. Some estimate that over 50% of the homeless population is mentally ill.
Ironically prison systems now provide these services (and sometimes paying more for them!!), but in a much worse environment for the patients.