Etymology
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sanatorium (n.)

"place to which people go for the sake of health or to regain health; hospital, usually private, for the treatment of patients not beyond hope of a cure," 1839, Modern Latin, noun use of neuter of Late Latin adjective sanitorius "health-giving," from Latin sanat-, past participle stem of sanare "to heal," from sanus "well, healthy, sane" (see sane). Latin sanare is the source of Italian sanare, Spanish sanar. Century Dictionary [1895] notes it was "specifically applied to military stations on the mountains or tablelands of tropical countries, with climates suited to the health of Europeans." 

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Definitions of sanatorium

sanatorium (n.)
a hospital for recuperation or for the treatment of chronic diseases;
Synonyms: sanatarium / sanitarium
sanatorium (n.)
pejorative terms for an insane asylum;
Synonyms: Bedlam / booby hatch / crazy house / cuckoo's nest / funny farm / funny house / loony bin / madhouse / nut house / nuthouse / snake pit
From wordnet.princeton.edu