In the U.S. Supreme Court Case, Olmstead v. L.C. (1999) referenced by Henry Roswell, the court found that mental illness is a form of disability covered under the Americans with Disabilities Act. Therefore, each person disabled by mental illness is entitled to treatment in the most integrated setting possible analyzed on a case-by-case basis.
This is a flashback episode, going back to the early days of Aaron's incarceration.