A bearded Klaus and Sunny comb the hospital's crumbling halls for Violet, who's being held prisoner under Count Olaf's questionable "care."
Olaf and Esme hide Violet as a patient in the hospital under a false name and warn the rest of the hospital to watch out for Klaus and Sunny, identifying them as murderers. Klaus and Sunny hide themselves among the volunteer singers to try to find Violet, and then later done a disguise of a doctor. They eventually find the patient list and deduce which room Violet is in, but this was a trap laid by Olaf.
Olaf forces Klaus, in his disguise, to operate on Violet within an operating theater. Klaus stalls as long as possible, and offers to tell Olaf the location of the film reel he saw. Olaf has Esme keep Klaus at bay while he checks the film, and learns about the survivor. He burns the film, which starts a film in the hospital. Klaus uses the fire as a distraction to rescue Violet, and the Baudelaires escape the hospital among the mass evacuation.
As there are police around, the Baudelaires recognize their only chance to escape is in the trunk of Olaf's car, as Olaf and his troupe head towards Madame Lulu's, hoping to learn more about the survivor of the fire. Elsewhere, an unknown person recovers the Sugar Bowl from the hospital.
