California state institutions?

Does institution here refer to "a hospital for mentally incompetent or unbalanced person"?

Context:

THE term, "criminal insane," is commonly applied to public offenders who are suffering from psychoses or from mental deficiency. There are about four hundred of this class in our California state institutions, about three hundred of whom are confined in the Mendocino State Hospital, which has been semi-officially designated the hospital for the criminal insane; one hundred, of various degrees of mental disturbance, in the State penitentiaries; and the remainder, most of whom have committed minor offenses only, scattered throughout the remaining state institutions. How many are still at large we cannot tell, nor how many border-line cases there are in the penal institutions and jails.