frontline's the new asylums addresses the deinstitutionalization of state psychiatric hospitals and the reinstitutionalization of the mentally ill in prisons. wgbh compiled a handy interactive map of mental health care in state prison systems, complete with estimated prevalence rates and staffing levels and contact information for administrators in each state.
i can't vouch for all the sources, but the bureau of justice statistics and american correctional association estimates are likely the best available. i haven't screened the video yet, but you can see clips online or order it for $30. i'd consider using it in my deviance class to show the interpenetration of social control systems, but it might also be useful in a social problems or punishment course.