The Chief calls a staff meeting to discuss Lola's nonexistent brain tumor.

The Chief tries to help a boy who has aged rapidly. Meanwhile, Blake tries to help people via the healing power of laughter.

Cat goes into labor with Little Nicky's baby. Little Nicky's advanced aging disease causes him to take on the tendencies of an old man as the disease begins to kill him. Lola Spratt returns from the hospital to explain that she faked her death, but everyone believes she is a ghost. Blake Downs returns to the hospital, following the failure of his private practice/spin-off. New doctor Valerie Flame takes over narrating duties on the show for Cat Black when complications occur in the birth of she and Nicky's child.

An episode of TV news magazine News Readers covering the filming of the final episode of Childrens Hospital, complete with behind the scenes looks at the show. Cutter Spindell (who portrays Blake Downs on the show within the show) interferes to save the series, convincing protesters that they're saving an actual children's hospital.

In a special live episode, a visiting Sultan needs emergency surgery; Blake faces a crucial decision about his clown make-up; Glenn cuts off his finger for Valerie. A surprise ending reveals the shocking the truth about one of the doctors, shattering everyone's perceptions. SEASON FINALE.