It was never finished. There's some more info here: http://puppetcombo.com/faq.htm
I lot of the Sanitarium Massacre code was used in Babysitter Bloodbath.
SInce I've changed game engines, I have to start the entire game from the beginning. I've also considered making it a survival horror game instead of having you play as the killer. If I went that route, I could probably finish it much sooner.