Actually the police and legal system does take mental health seriously. The problem, at least here,is their hands are tied by the Lanterman-Petris-Short (LPS) Act, which virtually abolished involuntary hospitalization except in extreme cases. All they can do is hold them for 24 to 72 hours. From there you go before the judge, they ask three questions, and if you can answer them you're on your way back out.

I can't speak for your neck of the woods, but out here and quite a few other states mental health is generally under the domain of the state or county government.. I don't know how much more oversight you can get.. Regarding the private facilities these are generally Hiltons with psyc staff. I think by your statement of big business, are you referring to the convalescent facilities that may have a psychiatrist on call.

As for the coverage, I believe this was addressed with the Mental Health Parity and Addiction Equity Act of 2008(MHPAEA) which pretty much does cover what is detailed at the time in the DSM-IV.. which is now DSM-5.