What does it mean for the Church to be institutionalized? Is it good or bad for the Church to be institutionalized?

To institutionalize something is to make it into an institution. In doing so, the entity (in this case, the Church) is given the stability that results from structure, to enable it to withstand the changes of circumstances that come with time. The Lord knows that we need structure. While too much structure can stifle the spirit, too little structure can leave it vulnerable to influences that are destructive. The authority that Jesus left the Church through its’ popes and bishops under the guidance of the Holy Spirit has kept it sound for over 2000 years and will continue to do so.