Kyle continues to abuse alcohol and prescription pills. After a vicious argument with Amanda regarding her baby obsession, he leaves for New York without sharing his plans. He scouts a hard rock band, whose manager holds wild parties in Kyle's suite and gets him hooked on drugs. When Amanda and Ryan come to Kyle's rescue, she sees women coming out of his room and assumes that he is cheating on her. She throws him out of the apartment. Lexi gives up on Peter after he wishes her well and urges her to move on with her life. She offers to make Megan a partner in her company if she can find Lexi the perfect mate. Jane and Michael call off the divorce, but face huge legal bills. A patient that Michael saved gives him a sports car and offers him an opportunity at a million-dollar investment (or so he says).

Eve and Ryan try to reunite Kyle and Amanda. Kyle tells Amanda that her unreasonable expectations have destroyed him. Ryan becomes suspicious of Megan's irregular hours. He sees her interviewing one of Lexi's potential dates and assumes that she has returned to prostitution. Michael embezzles $100,000 from the children's charity fund to invest with Perry. Perry vanishes with the money, and Michael learns that he is a con artist who feigns heart trouble to win the trust of wealthy doctors. Michael covers his tracks by volunteering to serve as the charity's treasurer. Kyle forces Eve to sing with Rikki G's band. The group's disgusting behavior prompts her to quit. A drunken Kyle tells Peter about Eve's murder conviction and long prison sentence.

Peter travels to Oakhurst to investigate Eve's past. He has a run-in with Kent's parents and the town sheriff, but an old friend of Eve's tells him the truth about the murder case. Eve comes looking for Peter, and he defends her from the townspeople's attacks. Ryan intercepts a drug delivery for Kyle and pushes his brother into flushing the pills. Kyle, Eve and Peter separately accuse Amanda of being a tyrant. Overcome with guilt, she takes Kyle back for some reason. Megan conceals the fact that a computer program pinpointed Ryan as Lexi's perfect mate. Ryan discovers that Megan has her own 800 number. He confronts her with allegations of prostitution, so she comes clean about Lexi's search for Mr. Right. Temporary chief-of-staff Michael promotes Amy to head nurse. A wacko nurse whom Michael had just met claims that he promised her the job in exchange for sex. Peter suspends Michael.

Kyle flies into a drug-induced rage and burns down his and Amanda's dream house. He tells Amanda that he is sterile and disappears. Ryan finds him drinking at the basketball courts and brings him home. Kyle injures himself while Amanda is out, and Peter recommends that he check into a rehab center. Amanda fires Rikki G and the band, prompting a furious Eve to quit. Rikki G tries to rape Amanda, but Peter comes to the rescue. Audrey's sexual harassment allegations are part of a scam engineered by Michael. She is to recant her story in exchange for a share of his winnings in a countersuit against the hospital. Audrey refuses to follow through until Michael agrees to a sexual relationship. She secretly videotapes their encounters. Lexi pursues Jane and Ryan to a Mexican resort, where they are trying to land an account. Jane sprains her ankle and returns home to reunite with the ""innocent"" Michael. Lexi impulsively kisses Ryan, but apologizes for acting rashly.