Well, this part is uncomfortable. Dr. Thredson's "cutting-edge" "therapy" to "help" "Lana" (wait, sorry, Lana is real) consists of sitting her in his darkened office and showing her slides of women in various stages of undress, all while hooked up to an IV of ipecac or whatever will make her barf. See, so she equates female sexuality with barfy feelings. This is either going to turn her het or else give her a raging puke fetish. He even includes a slide of Wendy -- a photo obtained from her house -- which seems in poor taste AT BEST considering Thredson actually knows that Wendy is missing and possibly dead at the hands of Bloody Face. Lana barfs some more and then says she needs a break before the next dose. So Thredson instead suggests they move on to the "conversion" half of aversion/conversion. But before you start to worry things won't be fucked up and gross, Thredson brings in some longhair hippie boy wearing a robe and nothing else. And pretty soon he loses the robe. Wait, sorry, this is "Daniel," a fellow patient. Okay, I've been giving Thredson shit for fun up until now, but I'm starting to think he's as much of a monster as Sister Jude or... well, no, Arden's in a class by himself. But Sister Jude, for sure. Daniel disrobes for that Lana can better "regard his physique." Lana says she doesn't feel anything, and she's so worried he'll make Daniel touch her. But no, Thredson wants her to touch herself, with both of them watching her. She's trembling and crying and it's awful. He has her place her other hand on Daniel's wiener and cheers her on while she performs the most depressing fingerbang since Mulholland Dr. and thank God Lana eventually gets sick again so we don't have to watch this anymore. Infuriatingly even-tempered, Dr. Thredson begins to wonder if aversion/conversion therapy will work with Lana at all.
Monsignor Howard arrives at Briarcliff looking quite put out. He calls Sister Jude up to his office and she tells him all about the police and Dr. Arden and the hooker and the Nazi memorabilia. He just kind of grits his teeth and chalks this up to Sister Jude's manic desire to see Arden removed from Briarcliff, but she stresses that there is "mounting evidence" that he's a war criminal. Howard demands proof, so she tries to tell him that a patient remembers him from Auschwitz without actually mentioning her by name. But he presses, so she reveals the patient is one "Anne Frank." This, of course, makes Howard even angrier and he brings up that he knows she's been drinking again. It seems her little "You'll Never Walk Alone" poetry slam did not go unnoticed. Sister Jude begs him to understand that these are not baseless accusations and that she's only trying to protect him, this institution and their dream. He just thinks the booze has compromised her judgment and he tells her to pray on that for a while.