Some mental hospitals are great examples of life in a state-run health care system: A large employment system that also happens to offer some amount of care, often in appalling conditions.
Vermont's Ethan Allen Institute recommends that the state replace the Vermont State Hospital for the Insane (yes, that's its name) with community-based programs. Not only will this save money that would be spent on a new building (over $100 million), it offers benefits to patients.
You can read the executive summary (PDF) or full report (PDF).