In the mid-1960s a Medicaid provision prohibited reimbursement to states for mental illness treatment in facilities that had more than sixteen beds. States then closed their large mental hospitals in order to get 50% reimbursement from Medicaid for out-patient treatment.
***It was actually Reagan in 1981. One of his big mistakes. ***
Actually begun by Edmund G. “Pat” Brown (1959-1967), carried on by Ronald Reagan (1967-1975), the continued by “Jerry” Brown (1975-1983).
No one gets a “pass” on this travesty.