The Collaborative International Dictionary of English v.0.48:

Bethlehem \Beth"le*hem\, n. [Heb. b[=e]th-lekhem house of food;
   b[=e]th house + lekhem food, l[=a]kham to eat. Formerly the
   name of a hospital for the insane, in London, which had been
   the priory of St. Mary of Bethlehem. Cf. Bedlam.]
   1. A hospital for lunatics; -- corrupted into bedlam.
      [1913 Webster]

   2. (Arch.) In the Ethiopic church, a small building attached
      to a church edifice, in which the bread for the eucharist
      is made. --Audsley.
      [1913 Webster] Bethlehemite

The Collaborative International Dictionary of English v.0.48:

Bedlam \Bed"lam\, n. [See Bethlehem.]
   1. A place appropriated to the confinement and care of the
      insane; a madhouse. --Abp. Tillotson.
      [1913 Webster]

   2. An insane person; a lunatic; a madman. [Obs.]
      [1913 Webster]

            Let's get the bedlam to lead him.     --Shak.
      [1913 Webster]

   3. Any place where uproar and confusion prevail.
      [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Bedlam \Bed"lam\, a.
   Belonging to, or fit for, a madhouse. "The bedlam, brainsick
   duchess." --Shak.
   [1913 Webster]

WordNet (r) 3.0 (2006):

bedlam
    n 1: a state of extreme confusion and disorder [syn: chaos,
         pandemonium, bedlam, topsy-turvydom, topsy-
         turvyness]
    2: pejorative terms for an insane asylum [syn: Bedlam, booby
       hatch, crazy house, cuckoo's nest, funny farm, funny
       house, loony bin, madhouse, nut house, nuthouse,
       sanatorium, snake pit]