By the mid-1970s, Dixmont had reached financial crisis due to the state's desire to shut down the hospital. As the concept of deinstitutionalization and use of Thorazine progressed, large state institutions were becoming obsolete and patient numbers decreased rapidly.
Dixmont Hospital was facing financial difficulties in the mid-1970s due to the state's decision to close it down. This coincided with the growing trend towards deinstitutionalization and the increasing use of Thorazine, which led to a decrease in patient numbers at large state institutions.