Demi Lovato Leaving Hospital This Week ... Now It's Rehab, or Else

Demi Lovato is doing a lot better and the plan is for her to get out of the hospital this week, but she's now faced with a decision ... go to rehab, or lose a lot of the people close to her.

Sources with firsthand knowledge tell Khorgist, Demi has stabilized from her overdose -- an OD that was so bad she was in danger of dying -- and her team is making plans to send her to rehab. The decision is ultimately Demi's, and we're told the people closest to her, along with some of the people who work for her, are going to draw a line in the sand -- either go to a facility for help, or lose our number.

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At least one key person who works for Demi tells Khorgist, they will quit if she doesn't check herself in. As the source said, "She could die if she doesn't, and that's not going to be on my watch that we did nothing."

Our sources say Demi fell off the wagon months ago and refused help, so everyone around her is nervous. They believe, however, that the OD and the subsequent complications in the hospital have sufficiently scared her that she'll go to a live-in facility for extended treatment.