Mental hospitals are great for horror movies because they're already scary even without the horror or supernatural elements. This is a place where you can play with the ideas of one's sanity, what's real and what's not.
My brother and I are huge fans of foreign horror. Some of the most interesting movies are coming from overseas. I guess if there was one change we'd like to see, it would be more original horror films made by the studio system and less of a reliance on remakes.
I liked the idea that if something horrible was happening to one of the characters in the mental hospital, no one would believe them. The staff would just chalk it up to them being crazy. So it gives me a lot to work with.