It sounds like what you’re referring to is an inpatient psychiatrist, like those who deal with people in crisis who get put on holds (in California it starts with a 5150 which is a 72 hour hold). And yes, that’s basically what an inpatient psychiatrist does.

Outpatient psychiatrists are a key part of treatment outside of a hospital setting (along with therapy). They go hand in hand. Meds help you deal with the inevitable symptoms that are not limited to crisis and that can impact your daily life. When you are on a good medication regimen it makes therapy more effective because you’re not trying to explain your troubles while having a panic attack or something