Here's the breakdown:
* Bethlehem was shortened to Bethlem and then further contracted to Bedlam.
* Bedlam became synonymous with the chaotic and noisy conditions within the asylum.
* By the 16th century, the term was widely used to describe any scene of uproar, confusion, or madness.
The hospital, founded in the 13th century, was originally meant to care for the sick and poor, but it eventually became overcrowded and notorious for its harsh treatment of the mentally ill. Visitors could pay a small fee to see the patients, who were often chained and subjected to cruel treatments.
This association with the hospital and its conditions solidified the word "bedlam" as a term for wild disorder and madness.