difference between a group home and a institution?

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What is the difference between a group home and an institution? Is institution simply an outdated term? My parents were told by a phycologist that they should put me in an instution and a phycatrist tell them I would probably grow up to live in a group home.

Institution is a very broad term and usually includes group homes. My parents were told the same thing by doctors too and it didn't happen.

Most people think of institutions as more of a hospital-type treatment facility, and group homes are where people get more individualized care in a group setting. I don't think there are very many true institutions anymore. Group homes try and minimize a hospital-type atmosphere by residents being able to have their own furniture in their rooms and they are ordinary houses in neighborhoods. It's more like a bunch of roommates living together with supervision & help with stuff like cleaning / cooking.

Group homes could also be similar to communal "assisted living" facilities where you're still quite independent, can come and go as you please, even leave forever if you want, but while there, there are staff (and your fellow residents) to help you manage with daily living activities.

To be "institutionalized" typically indicates an involuntary aspect to the arrangement.

A group home is a small institution. So the difference is mainly size.

Groups homes were built because many states closed their state mental institutions to cut costs...in what became known as "de-institutionalization that began in the 1960s. By placing people in group homes, these individuals can collect SSI and other benefits from the Federal Government.

Medicare and Medicaid are are also, federal programs although they are managed by state and local government through social service agencies in your community.

Group home is a subset of institution. Institutions aren't defined by size, they're defined by a particular power structure. You can have an institution with only one person if you do it right. (Or rather, wrong.) Calling larger institutions "true" institutions obscures the fact that the differences between different types (in terms of size and shape) are only cosmetic.