The purpose of the CMHA was to build mental health centers to provide for community-based care, as an alternative to institutionalization.

Only half of the proposed centers were ever built; none was fully funded, and the act didn't provide money to operate them long-term.

During the Reagan administration, the remaining funding for the act was converted into a mental-health block grants for states.

Since the CMHA was enacted, 90 percent of beds have been cut at state hospitals, but they have not been replaced by community resources.

[5] In many cases, patients wound up in adult homes or with their families, or homeless in large cities,[6][7] and without the mental health care they needed.