Nope. In the late 1970s, the ACLU and other pressure groups called for large mental health facilities to be closed, pushing the notion that "warehousing" the mentally ill was "cruel and inhumane." So the emphasis shifted from commitment to facilities to "community care and treatment." Remember all those "homeless" the libs hollered about back in the early 1980s, as they tried to tag Reagan's supply-side economics policies? Many of them were mentally ill.
Reagan actually personally ordered the deinstitucionalization of the mentally ill and the closure of the mental hospitals - to save money! - when he was governor of California. He was famously quoted as saying, during an interview in response to the question of how these people were going to survive, that they could get jobs as school playground monitors!
Reagan was great in many ways. But he was sure wrong on this issue.