Complete with a Main Street, a barber shop and hardware store, this village-in-a-box is designed to make elderly patients with memory loss feel at home in an unexpectedly interior small-town setting.

The Lantern operates a series of such “villages” in Ohio, each looking as much like a movie set as a walkable small town or historic suburb, complete with fake grass, cafe tables and street lamps.

Cute homes are accented with porches and rocking chairs while a high-tech ceiling overhead projects bird sounds and features a high-tech sky display that shifts over the course of the day (and night).

The dwellings and other buildings draw inspiration from the 1940s – in other words: they are made to look like the same places the people living here grew up in.

CEO Jean Makesh got his idea to develop this set of facilities while working as an occupational therapists in less-inviting facilities. His core vision involved using biophilic design to support normal and active lifestyles that would minimize habit disruption and transition anxiety for incoming residents.

It would be too easy to draw comparisons between this place and science-fictional film dystopias (like the Truman Show), but the reality is that for most residents this assisted-living facility is much homier than a stark white hospital-style complex.

A similar-but-outdoor complex in Holland has also been developed along the same lines, containing residents with controlled exits and disguised staff while providing the illusion of an open town through shops and streets.

It sounds at first like the dystopian plot of Dark City or The Truman Show, with free-seeming residents unaware they are actually inhabitants of a closed community they cannot leave and  in which they are under constant surveillance … but that is only one side of the story.

A total of 150 Alzheimer’s sufferers live in Hogewey, this gated community unlike any other. Located in the Netherlands, it boasts copious walking paths and open green spaces, a grocery shop, hair salon and dozens of stores and clubs.

The friendly grocers and stylists are, however, all employees of the facility (caregivers, doctors and nurses). If someone approaches the single exit to the outside world they are politely, gently but firmly told to perhaps try another door as this one is closed.

If this sounds like a terrible situation initially, consider this: patients can roam much more freely than in many elder car facilities. Patients here require fewer medications, eat better and live longer. Still, it raises philosophical questions that are difficult to answer about the relative value of knowledge and happiness, for instance.

Dormitory-style rooms are situated around the exterior of the campus, allowing views out, but building exits all face inward. Each residence structure has a “lifestyle theme” associated with it, designed to make people feel it home, surrounded by appropriate religious symbols for some, music and art for others.

CNN’s Dr. Gupta traveled to Weesp, the village in which the facility is set, and interviewed caregivers in this extensive twenty-three-minute segment on its purpose and workings. Some people question the ethics of the inherent deception, but if the residents feel at home, it is hard to say what a better alternative might be than this seemingly-ordinary everyday reality.