If the Murphy Bill is passed, psychiatric hospitals and pharmaceutical companies will reap huge financial benefits as a result of increased hospitalization and forced treatment. One way the bill will do this is by creating a financial incentive for states that implement “assisted outpatient treatment”: court-ordered treatment (including medication) for people whom a judge deems as living with “severe mental illness” and unlikely to willingly take prescribed psychiatric medications.
Psychiatric hospitals would also benefit from the bill’s proposed elimination of the “Institutions for Mental Diseases exclusion,” which currently makes mental health institutions ineligible for funding through Medicaid. By enabling psychiatric hospitals to access this funding, the Murphy Bill could usher in an unprecedented era of re-institutionalization, going against the recommendations of the Supreme Court’s Olmstead decision, which asserted in 1999 that people with mental health issues have the right to be in the least restrictive setting possible. If passed, the Murphy Bill will lead to large-scale re-institutionalization in hospitals for longer periods of time for people who now generally have the right to live in supportive communities of their choosing.