After this, Ray struggled with depression and alcohol abuse. In 1936 she suffered a mental breakdown and was institutionalized for 37 years at Holloway Sanatorium in Egham, Surrey. In 1939 she was listed there as "Incapacitated". Registered as Mrs Eric Loder, at least part of her long stay at the sanatorium was happy. Ray continued to care for her personal appearance, having a liking for smart clothes and hats. Other Gaiety Girls visited her, including Gertie Millar and Lily Elsie, but she was never visited by family members. Hospital staff later recalled her infectious smile and that she enjoyed walks into the nearby village for shopping and car rides. After her death one of her nurses said, "she was a very quiet lady, small and neat, who did not give any indication of the high life she must have enjoyed".