I went to school at Braddan which was close to Ballamona Hospital, this had started off as the Lunatic Asylum in the 1860's. I cannot speak for medical treatment, but in the 1960's a lot of the patients must have suffered from what we would now term learning difficulties. Typically after parents died, no-one was able to offer care for them in the community. A number of patients had a fairly relaxed regime, and typically there would be a few sitting on the roadside hedges, or hanging round at the Strang crossroads. They used to wave to people they recognised driving past. I feel these individuals would now be able to live in sheltered accommodation.
Persons with true psychiatric disorders would I suppose be confined to particular areas of the complex. Many could now be successfully medicated.