If the city or state improperly rejected hospitalization, and citizens were injured as a result of that action, the law will have to decide how to apportion the cost of that harm. So there are more than just the unhappy, frustrated mental patients to consider. There is also the safety of the general public. And to hospitalize, especially in a mental hospital, is to invoke endless disagreement, and loss of individual freedom. So much is at stake here.
Many validity claims vie for good faith hearings.
Those in positions of decision-making power may privilege their own subjectivity. Then there is concern in public discourse for a forum in which all claims can be heard in good faith. Often theory will dictate policy. Notice that whether a theory takes an individualist or a structuralist approach to the problem does not depend on where the theory is located on the political spectrum. And they would remedy that false consciousness by teaching genuine consciousness to the individual.