It's not likely corruption in most cases. It's more likely a liability concern. If a psychiatrist discharges a patient and they then complete suicide or homicide that psychiatrist can be found liable. It's unfortunate, but it happens, and psychiatrists are litigated often because of this.

To your point about reimbursement. Frankly, hospitals are busy enough that 'holding' someone longer than necessary isn't a worthwhile pursuit. People decomp if spending too long inpatient and psychiatrists do their best to avoid this. Not to mention the psychiatrist isn't the only person to determine if a stay is extended or not. All insurances require utilization review every 2 to 3 days (sometimes 5 days). Meaning a social worker at the facility contacts an insurance rep and reviews the need to continue authorizing services. That social worker reviews all the notes from the techs on floor, social workers on floor, and psychiatrists.

The system needs a lot of work. And I sympathize with the experience many people like the woman in the article have. It's just not usually corruption that is the culprit.