Happy Days Mental Institution is a mental hospital run by Dr. Clay Bodnar M.D. It is considered a fine institution but some things of questionable legality happen there.
Happy Days is located on an island somewhere off of the coast of Clayland. It's exact location has not yet been revealed to the public and it is top secret.
The patients at Happy Days are given a revolutionary new treatment titled quite simply "Happy Days". This treatment developed by Dr. Clay Bodnar, M.D. is a treatment where the song "Happy Days" is played for several hours. Also, the tapes are intentionally broken so that the only line played is "Wednesday, Wednesday Happy Days" in a loop. This treatment supposedly dulls the mind and makes it easier for doctors to treat patients. Another treatment is to pour magic on the patients face and hope it has an effect.
Several famous people have been patients at Happy Days. One of them is Clauf Bodfnar the famous serial killer, but he escaped before his treatment could finish. Another is Alex P. who also escaped back to his underground home before his treatment was finished. Several Jefflandic military officials were also sent to the island in an effort to make them more "appreciative" of the Claylandic government.