Shawn Shawnvisions the pill being administered to Bernie, and it reads 50 mgs — not 1000 mgs, the dose he saw Bernie initially take. With Gus's help, Shawn formulates a new theory: Bernie appeared insane initially because his medication hadn't kicked in yet. And now that it has kicked in, Bernie no longer appears to be insane.
From this, Shawn puts it together that Dr. Elliot was the inside man getting paid to make Bernie crazy by not giving him the proper dosage of meds. However, when Shawn goes to confront Dr. Elliot about this, he finds Elliot dead. Shawn runs to tell someone about Elliot's death, but he gets knocked out. Shawn later wakes up to find himself in restraints, surrounded by orderlies. Shawn tries to tell the orderlies the truth of what is going on — that he is there undercover — but they don't believe him.
Gus tells Juliet and Lassiter about Bernie's arthritis. They go to question Bernie's lawyer, Phillip Zurn. Zurn claims that Bernie said a lot of crazy things during the trial, and that if he knew about the arthritis, he would have brought it up to help clear his name. Zurn also says that Bernie was his only client for the last 20 years. Juliet finds this fishy, as Zurn's office appears to be experiencing success and expansion after losing their only client.
Gus finds a restrained Shawn and helps him escape. They see Bernie being wheeled to the 2nd floor to get electro-shock therapy, but Vivienne creates a diversion, thus enabling Shawn and Gus to make their escape from the hospital with Bernie in tow.
Just then, Juliet gets a call that Shawn just broke Bethel out of the mental hospital. Juliet tells Shawn on the phone that she thinks the lawyer Zurn may be the mastermind. Shawn puts it together that Zurn must have found out that Elliot put Bernie on meds that made him lucid and had Elliot killed so that Bernie wouldn't receive the right meds and would therefore remain as though he was actually insane and not simply a person who was off their meds.
Shawn also makes the claim that there is no way Zurn could have acted alone, and that there must have been someone on the inside making sure Bernie got the incorrect dosage of meds. Shawn figures out that the insider tampering with Bethel's meds, keeping him crazy, was Nurse McElroy.
They head to Nurse McElroy's apartment to confront her, and McElroy admits to messing with Bernie's dose, but doesn't cop to killing Elliot. Shawn believes her, then Shawnvision Flashbacks's to the local news piece. He remembers one of the people interviewed was Bernie's brother Daniel. And sure enough, Daniel enters the room with a gun drawn, signaling that he was the one behind framing Bernie for Sheila's murder all along. In order to save himself, Gus, Bernie, and Nurse EcElroy from getting killed by Daniel, Shawn blares a Kenny G album, forcing an unmedicated Bernie into a panicked freak out similar to an outburst he had earlier. Bernie goes nuts from his real phobia of saxophones. Just then, Lassiter and Juliet show up, guns drawn, and are able to take down Daniel and save our guys.
In the end, Bernie gets the treatment he needs and the real murderer, Bernie's brother, is put behind bars.