According to Osho, yes: madhouses arise from the very idea of God propagated by priests. Belief in a punitive deity breeds guilt; guilt forces unnatural repression and perversion; such distortion culminates in madness, requiring asylums. Pagans and wild animals—without God and repression—remain sane; only in 'zoos' like monasteries and nunneries does insanity and aberration flourish, sustained by a church–psychoanalyst loop.
He says the idea of God makes people feel guilty, that guilt twists natural life into madness, and without that idea there’d be no madhouses.