First off, nice longer chapter. I would think the hospital's biggest concern would be Jake's ability to morph. Like any other weapon, morphing would be seen as problematic. When I spent three days in the psychward, the first thing they did was take my shoes away. I wasn't allowed to have shoelaces without approval from my clinician.
Then there was an initial interview with the staff about what my triggers were, etc.
For Jake, I would assume the morphing ability would come up in conversation.
You did get the part about an evaluation correct. Malingering is one of the major problems hospitals have to deal with when admitting a patient who claims to have mental issues. Basically malingering is what happens when a person deliberately gets himself admitted just so he can have a bed to sleep in and three free meals a day. It's the staff clinician's job to determine if the patient is faking it or not and most can tell the difference.
Now, in the case of Jake, he has very obviously displayed signs of a mental breakdown. But if he didn't present a danger to himself or anyone else, the doctor would at best recommend him for outpatient therapy with a psychiatrist experienced in PTSD.
It will be interesting to see how you play this out.
But teasing is how you keep your readers reading!
Not to hijack Jar Jar's thread, but I have to disagree with you here. Suspense can keep a reader interested, teasing can quickly bore and scare away your readers.
If you only post one or two paragraphs of the story then you'd better post pretty frequently. Otherwise your attention deprived readers (Sorry, you know who you are on this forum) will go looking for something faster paced and with more action. A heady piece like this, where the action is taking place primarily in the mind of the protaganist, still needs meat and potatoes.
There are plenty of books like this out there.
Girl, Interrupted comes to mind as the story of a stay in a mental hospital from the point of view of the patient, AKA the author. So it can and infact should be done with as much substance as possible to keep the reader checking for updates.