You had already begun to create the category -- you'll notice it showed up red. That means you needed to complete creating the category by nesting it in a higher category, which i just did -- I nested it directly under the Category: Insane Asylums, which already did exist. So your category now officially exists.
I don't believe with a topic like asylums that we need a complicated category hierarchy divided into countries, states, etc. It's easier to find what you're looking for if they're all in one big category like Insane Asylums. If we get over 200 asylum categories, then we can consider dividing them into smaller portions -- but that will be awhile!
As a side comment, I"m in New Orleans at the moment attending the annual convention of the National Alliance on Mental Illness. Today we recognize that mental illnesses like schizophrenia, depression and bipolar disorder are physical illnesses in which the biochemistry of the brain has gotten off-kilter, thereby creating the symptoms of mental illness. Because they most often show up in late teens/early twenties, some term them a developmental disorder. We campaign not only to treat mental illness, but to counter stigmatization of people who have a mental illness and we discourage the use of words like "insane" and "crazy".
So should we have a category like "insane asylum"? Yes -- precisely because it tells us something important not only about the people who were there, but about the society that placed them there. These were places people were often treated very badly by a society that was afraid of them and shunned them. They are an important part of history.
I hope you can find out enough about Josiah Sirmans to write up his biography to share some of the challenges he must have faced in his life, and some of the pain he surely endured.