If he remains in need of additional hospitalization, they cannot discharge him. The threats are totally unethical. I would report this hospital to the Attorney General and tell them you are about to do so. I will double check to see if there is healthcare department that would be the agency to contact.
This is information only, NOT legal advice. No attorney-client relationship has been created. Consult an attorney in your state for legal advice regarding your issue.
Looks like the AG is the proper place:
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