Mental Health treatment in America has been largely de-funded in the last 40 years due to a number of factors. While insurance providers have made hospitalization more difficult to achieve, it is really the model of de-institutionalization (introduced in the 1960's and fully realized under President Reagan) which has failed and continues to fail the mental health consumer.
Institutionalization has been shown to be an effective intervention in controlling the harmful impact of mental illness upon patients as well as communities. Communities have been tasked with monitoring the mentally ill via outpatient civil-commitments and other such means. These efforts have failed (and will fail) because there are never enough personnel to complete the task.
Institutionalization must be considered.