The problem was that the response from the public was to eventually end the entire mental health system as it existed. You will see people blame Reagan for that but that is straight up a lie, Reagan only closed the final batch of asylums. Since the 1960s the tide was turning, starting with JFK (who had a particular bone to pick with the mental health people since they lobotomized his sister). The 1972 expose put it on the public sights, and Nixon, Ford and Carter all pushed to slowly shut it down.
The issue was that closing down the asylums didn't make the mentally ill disappear. They just started living in the streets or getting arrested.