Your describing 19th century practices. It’s not as if time has been standing still. These days (europe) mental health services are institutions. Often a group of buildings, ranging from very open assisted living to closed for the truly insane. While there are instances of abuse on rare occasion, it seems to be miles of from the barbarism of the 19th century.

So there is a whole spectrum of classification these days so only who are truly harmful get locked up when necessary.