If your sister were acting so crazy that you wished you could have her committed to a mental hospital, you'd be dreaming you could institutionalize her, or check her into an institution.
The verb institutionalize is usually used to talk about committing people to hospitals, nursing homes, or other facilities where they will live and be taken care of in some way. There's another meaning of the word that means "to establish as a regular way of doing things." In this case, a teacher might institutionalize the tradition of ordering pizza for the class once a month; in other words, pizza parties would become a permanent, official part of the school year.
