What is it meant by "setting" in "institutional setting" below?

In this case, an "institutional setting" would be a private or public institution established for the care of the disabled. This is opposed to people who live with their relatives or on their own. Have you seen the movie Rain Man? Well, Raymond's (Dustin Hoffman) family was taking care of him at home, but sent him to live in an institution (institutional setting) when he inadvertently injured his brother. I'm sure you're familiar with state-run facilities for the blind, deaf, mentally disabled, etc., in your community. These are "institutional settings." The significance in this excerpt is that the Nazis targeted the facilities established for helping disabled people to conduct their exterminations.