Arkham Asylum

Arkham Asylum is a mental institution in the town of Arkham, not far from the towns of Newburyport and Innsmouth. It appears multiple times throughout the game, either through cutscenes or during Jack’s psychotic breaks.

Role in the game
After Jack’s visit to the Harmonic House and his encounter with the Yithians, and after being diagnosed with severe schizophrenia, he will be committed to the institution for about half a year.. He was then released, with doctor’s assumption that he presented no danger to either himself or others. His next six years will be spent on travel and study.

After Jack escapes Innsmouth, he will be recommitted to the Asylum, but only briefly. While being there, he will be interrogated by Federal Agent J. Edgar Hoover. Later that day, he will get released, as he is then forced to acompany them on a raid on the Marsh Refinery.

Jack will be recommitted yet again after escaping from Y’ha-nthlei. This time however, will be the last time, as he will commit suicide only a few days later.

Trivia

 * Apart from the name, it has no connection to the Arkham Asylum from DC Comics universe - although the name of the DC Asylum is most likely inspired by Lovecraft's works.
 * Dr. Eric Hardstrom is one of the doctors in the Asylum