1. You beat, intimidate, and throw people in jail for doing drugs or living on the street. (The old way)
2. You let these people live untouched and degrade public order, decency, and safety. (The current way)
3. You force people with mental health and drug addiction problems into healthcare and rehab facilities. (What you are suggesting)
Out of these three options I do agree that the third one sounds the best for society, and for those who have these addictions and illnesses.