I'd guess that easy access to health care plays a big role. Regarding the raving lunatic: presumably it's not a matter of "where to put" him, but that, with access to care, fewer people end up in that situation.

In that particular case, everyone just kind of steered clear of the guy and let him go about his (crazy) business. Bystanders appeared shocked and fearful of his behavior, which in San Francisco would have been completely mundane.