First, let me agree with the two above comments. The overall structure of the story was very cool and well done, and the reading was perfect.
Overall, a pretty good story. I'd place it in the middle of the pack as far as Pseduopod entries go, but as usual, that's because the overall excellence of the podcast makes the middle of the pack a very respectable place to be.
What makes the story fail as far as achieving true excellence is that I didn't find the threat alluded to in the story to be fully up to the level of Lovecraft or the best of his followers. Not that the feeders were pleasant or that Bedlam didn't sound horrific, it's just that what makes Lovecraftian truly work is the notion that madness and horror lies just behind the corner for all of us, if we were just a bit more aware of how the world works. In this story, it shows that those who are already made or mentally infirm are preyed upon, by both the unscrupulous medical institution and (maybe) the supernatural. Not a good thing, but not spine-chilling in quite the same way.