Morgan arranges for Sturgess to return to the hospital and both, along with Luther and the veterans, start planning a hostile takeover to properly attend the patients without the administration's interference. The veterans successfully lock the security guards outside while Dreyfoos is away, and Luther, armed with Polaski's M16, keeps the guards away while the police, despite being pressured, cannot remove the veterans as the hospital is under federal jurisdiction. It does not take long before the press arrive and this catches attention of the FBI and the Inspector General (Noble Willingham), who travels to assess the situation. The Inspector General attempts negotiating with Luther, but he stands his ground as the veterans unfurl a massive banner in the hospital stating 'No Surrender'.