It can be mediated. If mediation fails, it will enter the litigation stage. Although the mental patient is hospitalized, he can still be a legal person as the defendant, so he can sue. When a mental patient litigates for divorce, whether he or she appears as the plaintiff or the defendant, he or she should first identify his or her mental state.
 Legal basis: mediation statement in Article 97 of the Civil Procedure Law
 When an agreement is reached through mediation, the people's court shall prepare a mediation statement. The mediation statement shall clearly state the claims, the facts of the case and the mediation results. The conciliation statement shall be signed by the judges and the court clerk, sealed by the people's court, and served on both parties. The mediation statement shall have legal effect once signed by both parties.