The last 30 minutes manage to be quite effective, while sometimes being also a bit derivative.
The sequel wasn't quite so well received as its predecessor, but if nothing else it revealed that the hospital is sentient and enjoys having people to torture.
To top it off, it specifically released one person to spread the word and lure people back to ensure there would be more victims. And if he refuses? Well, he'll just be brought right back so he can enjoy the place for himself.
The group actually manages to escape, run back to their hotel, and get themselves all ready to go home. They get in the elevator to go down to the lobby. The doors then open, revealing that they're back in the tunnels under the hospital. It's also a Mind Screw: Were they in the hospital the whole time and just being presented with an illusion of freedom? Or worse, did they actually get away but then get called back? It may well be the latter, since the threat of this is what gets Alex to cooperate at the end.
Lance's lobotomy was a Real Method: Transorbital lobotomy, Invented with a Icepick, grapefruit, a rubber mallet and a cadaver as a cheap method that could be done with out painkillers due to asylums' often low budgets.
And of course, his having gone through one at the end, complete with the finished Apocalyptic Log.
Lance finding photos of the Grave Encounters team being experimented on in the final five minutes of the movie.
In fact, Lance's entire descent into insanity after Sasha's disappearance.
The sequel features one memorable ghost merely credited as "The Tall Man". He's a truly horrifying sight to behold: a tall, gangly, twisted thing that crawls through a window and charges relentlessly.
About 20 minutes in, as Alex is doing his episode, the computer somehow gets taken over by a spirit as it starts printing the call sheet for him. His face even distorts like the patients in the first film as it glitches!
The sheer mindbreaking reality warping the Hospital is capable of. The second the team decided to stay the night at the place, they were doomed. Their food rots like its been there for weeks instead of hours, the sun never rises, and the doors just loop back into the building. Time means nothing there.
The implications of the Hospitals true nature. Its implied by some occult books Lance finds in the operating room that the head doctor may have created the place through experimentations with black magic.