That is what I didn't understand either. So Yale has a real hospital, I can see that. But since they admitted an Yale student does it mean all their medical history is now shared. Or does it mean the psych ward head can advise with the "send home" vs "let them stay" binary decision up the chain, to the Dean for example, and the dean just accepts that and goes with it.

That is what I mean lie and don't trust institutions. Always think what and how they can use what you give them against you. Because sometimes they will.