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Yes, there was a notable correlation between the closing of mental hospitals and increases in homelessness and some types of crime. When President Reagan cut federal funding for mental health institutions, a trend that began in the 1960s with deinstitutionalization (where mental health care shifted from large state institutions to community-based treatment), the intention was to provide more humane, community-centered care. However, funding for community programs was inadequate, leading to a shortage of resources for people with mental illnesses.
This lack of mental health infrastructure left many former patients with few options, contributing to an increase in homelessness and a rise in interactions with the criminal justice system. Studies found that individuals with untreated mental illnesses were more likely to end up in jails or prisons for nonviolent offenses, and some researchers identified a correlation between the closure of mental hospitals and increases in certain crimes, particularly those related to homelessness and poverty, such as petty theft, vagrancy, and disorderly conduct.
While deinstitutionalization was intended to improve mental health care, the lack of adequate community support led to a cycle where people with mental illnesses faced homelessness, poverty, and encounters with law enforcement, increasing their chances of incarceration and contributing to what we now see as the criminalization of mental illness.
There are several studies and sources that delve into the impact of deinstitutionalization, Reagan-era cuts, and the correlation between mental health system failures and increases in crime and homelessness:
Torrey, E. Fuller. American Psychosis: How the Federal Government Destroyed the Mental Illness Treatment System. Oxford University Press, 2014. This book by psychiatrist E. Fuller Torrey provides a detailed account of how deinstitutionalization led to a shortage of psychiatric beds and left many individuals with mental illness homeless or incarcerated. Torrey discusses how Reagan-era policies accelerated this process, with inadequate community support systems contributing to a rise in homelessness and interactions with law enforcement.
Lamb, H. Richard, and Linda E. Weinberger. “Deinstitutionalization and Other Factors in the Criminalization of Persons with Serious Mental Illness and How It Is Being Addressed.” Crime & Delinquency, vol. 44, no. 3, 1998, pp. 416–425. This article explores how deinstitutionalization without proper community care led to more individuals with mental illnesses entering the criminal justice system. Lamb and Weinberger argue that the lack of sufficient mental health services often left people with severe mental illnesses on the streets, where they were more likely to be arrested for minor offenses.
Markowitz, Fred E. “Psychiatric Hospital Capacity, Homelessness, and Crime and Arrest Rates.” Criminology, vol. 44, no. 1, 2006, pp. 45–72. Markowitz examines the relationship between reductions in psychiatric hospital capacity and increases in homelessness and arrest rates. His research suggests that areas with significant declines in hospital capacity saw corresponding increases in arrests for minor offenses, often involving individuals with untreated mental illnesses.
Human Rights Watch, Ill-Equipped: U.S. Prisons and Offenders with Mental Illness (2003) This report details the high rates of incarceration among individuals with mental health disorders and links it to the lack of community-based mental health services following deinstitutionalization. It highlights how prisons became de facto mental health facilities after the reduction in state-run institutions and community support.
Koyanagi, Chris. “Learning from History: Deinstitutionalization of People with Mental Illness as Precursor to Long-Term Care Reform.” Kaiser Commission on Medicaid and the Uninsured, Aug. 2007. This report from the Kaiser Family Foundation reviews the history of deinstitutionalization and its impact on people with mental illness, including increased homelessness and criminalization. It suggests that inadequate planning and funding for community services led to the negative outcomes associated with this policy shift.
These sources provide evidence of the unintended consequences of deinstitutionalization and the funding cuts to mental health services, particularly in terms of the rise in homelessness and minor crimes related to untreated mental health issues.