Yes, that's what they used to call these places. After my dad died in 1960 when I was eleven, I went to live there with my Aunt Isabel and Uncle Vinnie who were the superintendent and matron. Here's what it looked like back then:
Holidays were big events at the County Hospital with the 4th of July being one of the biggest. My cousin, Jack, had wired one of the most grandiose stereo systems and John Phillips Sousa would be blasting away on the 4th. All the patients would gather out in the yard. Balloons, pinwheels, sparklers, and ice cream would be passed out to everyone. There was probably supper but I don't remember that. My nieces from Appleton would be there I would especially look forward to seeing Butchie, my half-sister Vivian's oldest daughter. She was one or two years younger than me and we would always have one heck of a good time.
We always got to have cap guns and those little round strips of caps. We could play for hours with that stuff. Here's a picture of my father on July 4, 1948, giving out balloons.
Here's a picture of him and my Aunt Isabel dishing out ice cream with Homer (one of the patients) getting the cone. Homer was still there when I went to live there 11 years after this picture was taken. I really don't know of any patients getting "released" from the hospital until things started changing in the late 1960's and patients were mainstreamed into society.
Here's one more picture from the same 4th of July celebration in 1948. The women are Grandma Klink, Grandma Schultz, and Mayme. Grandma Klink, my Uncle Vinnie's mother, died before I got to know her. I have no idea who Mayme is.
Except for breakfast, the family's meals were always formal. We had white linen tablecloths and napkins, china, crystal and real silver silverware. There was a dumbwaiter that brought the food up to the pantry from the kitchen below. One of the trusted patients, most often Rosie, stood in the doorway between the pantry and the dining room, waiting to get us more water, pass dishes, etc. For holidays or special occasions, the table setting got even fancier, with candles and more crystal. Here's a picture of one such occasion, my twin cousins' 8th birthday. Left to right are Aunt Isabel, my cousin Karen, my cousin Carol Jean, and my cousin Kenny. Aunt Isabel always sat to the left of Uncle Vinnie who always sat at the head of the table with his back to the pantry.

On the hospital grounds (which covered hundreds(?) of acres), there were about ten 10' x 20' flower beds on the way to the hospital, designed and managed by Aunt Isabel. There were seating trellises covered with beautiful roses in the summer. And there were gazing balls on stands which probably explains where I got my love of gazing balls.
My aunt had a big greenhouse out back of the hospital and every spring she started boxes and boxes of annuals. I remember alyssum, beautiful sweet peas that she covered with cheesecloth to protect them from the hot sun, and my favorite, cockscomb. The flower beds were masses of color and maintained by my aunt and some of the patients.
Here's a picture of my niece, Butchie, and me, standing by one of the trellises. It was probably about 2 weeks after my dad died and my aunt convinced Butchie and me to let her give us permanents. I don't think Butchie ever got another permanent after that.