OK - i'm gonna try and be a bit more helpful. Altho' the film as you describe it doesn't 'ring any bells', let's start with some of your clues...
Klaus Kinski - 'And God Said To Cain'. Gets out of prison ( not an asylum) .. there is a hanging (from a bell-rope - which does ring some bells) - otherwise not very similar.
Asylum - 'Chuck Mool' or 'A Pistol for a Hundred Graves', both include an asylum - no K.K. tho', but Chuck Mool has a not-yet-known family link ... but a father in this case. Could be the one ???. Can't think of any others if an asylum is a definate.
Thinking about all the maybe's I'd try and pin it down to one definate. I remember trying to find what turned out to be 'Adios Sabata' cos of the galleon that shot people as they opened the drawer underneath, but it took me ages to find it cos I'd got bits of other films mixed up with it.... . If there's for certain an asylum, I'd try CHUCK MOOL ... And reject it if you get another definate to override the 'asylum' link.