Chanel, #3, Zayday, and Munsch discover Denise and #5 after the Green Meanie's attack. Munsch reports that Denise is dead after taking her pulse. She suggests that they dump her in the swamp, but the group discovers that their costume party patients have also been murdered, so Munsch is forced to report their deaths to the authorities. Meanwhile, Zayday and Munsch store Denise (who Munsch reveals is actually only braindead, but not fully dead) in the cryogenic chamber that Munsch had built with some of Chad's money. #5, meanwhile, is alive but gruesomely injured. The others completely ignore her.
In the weeks after the deaths were reported, the hospital gets a massive influx of patients thanks to the free publicity and thanks to the fact that the patients are willing to risk possibly being murdered in their search for a cure.
One of the patients they get is a woman who works at the United Nations. She fell down and hit her head, resulting in her unknowingly switching between various foreign accents constantly. Holt diagnoses her with foreign accent syndrome. Holt, #3, and Cassidy all end up "catching" the foreign accents as well. Holt later diagnoses them with Madonna syndrome and prescribes watching American-accented movies all weekend to recalibrate their normal accents. Cassidy makes an excuse about being busy that weekend.
After Hoffel forces them to do gross work at the hospital, Chanel and #3 decide that they need to recruit new Chanels to boss around and do their dirty work and to be human shields against the Green Meanie.
They recruit Chanels 7, 8 and Pour-Homme -- two of the incurable patients, Marguerite Honeywell (who has Marfan Syndrome) and Daria (who suffers from Mobius Syndrome), as well as a young gay man named Tristan who was obsessed with the Chanels while they were on trial and wrote femslash fan fiction about them. Chanel also recruits Hester after Hester scares her at the hospital and convinces her that it would be beneficial for her to work with them to figure out who the Green Meanie is.
Meanwhile, Zayday becomes convinced that Chamberlain is the baby born to the woman whose husband was murdered in the hospital after Munsch reveals that she never actually hired Chamberlain -- he just showed up at the CURE Institute and lied about being hired. Zayday and #5 track down the wife of the dead man in order to investigate, but leave without any definitive answers after she tells him that she and her son don't have a close relationship and that she hasn't seen him in years. At the hospital, when Zayday confronts Chamberlain, he convinces her that he honestly just likes making people happy and that nothing nefarious is going on.
Munsch fires Hoffel for how she treats the Chanels and for being addicted to pethidine. Hoffel threatens to expose Munsch's disease to the board if Munsch fires her. Munsch rescinds the firing, to protect her secret.
At Hester's suggestion, the Chanels set Daria up to be the first bait victim of the Green Meanie. They trick her into going down to the morgue alone during a sleepover makeover party at the hospital to find a Hermes necklace. Tristan ends up going downstairs to find the necklace himself and gets murdered by the Green Meanie in Daria's place, much to Hester's obvious delight.
Munsch reprimands the Chanels for hiring new Chanels to be bait for the Green Meanie and demands to know where Hester is. The Chanels play dumb about Hester. Munsch introduces Addison, Andrea, and Midge, a group of strange girls who will be Chanels 9 through 11. Chanel sends all of the new Chanels off to clean #5's bed pan. They obey, but on their way through the hospital hallways, they're attacked by the Green Meanie who kills eleven-fingered Midge after slicing off her eleventh finger.
Cassidy is revealed as the true son of the murdered man from 1985 and his wife. He returns home to see his mom, revealing that she was lying about not having seen her son in years, and she tells him that two people from the hospital stopped by. He tells her he'll take care of everything.