
kerbear1973,
I can understand the anxiety your friend's behavior and parents are stirring up within yourself.

I am shocked that the hospital released your friend in that condition, with directions to simply make an appointment with a doctor

.
Legally, your friend's parents don't really have the right to demand that you stay away from their daughter. If you and she share a deep bond of trust (and if she has a lot of discomfort around others), I might recommend that you be with her in less intense moments to reassure her that you do care.
If that is too uncomfortable for you to do right now, send her a card. Call her regularly to ask how she is. Listen to what is happening, how she's adjusting, and then determine how you might help her without hurting yourself. What do the "sane" people in your life recommend? Do they think that you should back off, or push yourself to be there for your friend? Is there a middle road that they see?
I wish you the best & hope that things improve soon. Take care!
Shez