I could easily believe it could happen today, given enough concern about the public welfare versus the disease in question. (We can all say "Guantanemo." Not much difference.)
But given the disease-related threats (ebola, for instance) and swift global transmittal vectors today, it is likely that the disease would spread far too fast to be contained in such a way. More likely, healthy people would try to seal themselves off from the sick by blockading towns, screening visitors, etc... if they did anything at all.
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