Good atmosphere, yet problematic plot and mechanics.
I enjoy the idea of a horror game set in the asylum as it creeps me out big time. The atmosphere in this short demo was phenomenal. I liked the "fisheye" style camera look and the environment definitely elevated the ambience, but, as I said the mechanics need to be worked out.
The flashlight is strange. The character movement is a bit odd for me and I would suggest working a lot on lighting and mouse sensitivity.
Overall, good start. Best of luck with the future developments. Cheers!