Well. We used to have them, but people abused them, sending wives off to get rid of them and what not. Put some significant safeguards in place to stop anyone abusing the system. Make the sanitariums safe and clean.
But we have dangerous people walking around with significant mental issues. It would probably solve 90% of the homelessness problem we have as well. They refuse to take their meds, at some point we have to do something with them. Sticking your fingers in your ears doesn't help much either. If you're waiting for a perfect solution that makes everyone happy, we'll still be waiting when the Rapture happens.