Once a respected mental health facility, Cunningham Hall is now a decaying relic with too many patients and too few dollars, but when an eager young medical student named Clark Stevens accepts an internship in the asylum to finish his degree, he soon finds himself reporting for duty in a MADHOUSE.

Clark also meets Sara, a lovely young nurse who gives him a tour of the facility, including the dreaded basement, AKA The Madhouse. Clark soon grows concerned with the condition of the patients, including Alice's horrifying hallucinations and Carl's suicidal tendencies. But Clark begins to question his own sanity when he sees the haunting figure of a young boy, who appears to be trying to warn him. Clark turns to Sara for help, and becomes increasingly attracted to her, but finds that even she has something to hide.