I've also read that while the location of the story is still vaguely "East Coast", the head of the mental institution is a Bostonian. Could mean a quaint 1960s New England setting? We have our fair share of creepy old abandon mental hospitals in New England.
Have you seen Session 9? Fantastic movie. Terrifying, atmospheric. Great performances by everyone involved. The movie takes place at the Danvers State Hospital in Danvers, MA, which was built in 1879.
Lastly, it turns out that Jessica Lange is not playing the lady in charge of the hospital, but she's also a "Bride of Christ". Yes, a nun.
