Then incarceration in mental institutions and long term drug rehab facilities seems like the only answer.
I don't know if modern institutions could be better. However we know they failed in the past. If you want to propose them again, you need to provide some proof that they new ones will be better than the old.
Well, I'm glad someone is because everyone else seems to be worse off as a result
Fortunately mass incarceration and just doing nothing aren't the only two options.