Okay well, with psychosis, they are not lies. Psychosis is true, even though it's actually not. How does that work exactly?

Well, a lie is a purposefully crafted thing that is not true, and told on purpose to mislead someone else.

Psychosis is a firmly held belief, which may often seem very strange to others, that the person 100% believes is true. It is their actual reality, even if it is not the reality for anyone else around them. Nothing anyone can say can convince someone that a delusion is false. It would be like trying to convince you that the sky is green and it rains gumdrops.

For example, when I worked in an eye clinic we had a patient with schizophrenia who had a certain name, first and last, which was his real name. There are two other men in the country who were actually somewhat known in the media, and they just happened to have the same name as our patient. One was a political speech writer and the other was a criminal lawyer. Our patient believed that he was both of those men... or more correctly, that those men were him. He had written the book published by the speech writer. He had defended and prosecuted the cases of the lawyer. He could not distiguish that he was a different person with the same name....

So he would sit and tell you details about "his" book or trials as if it were true, because he was proud of those accomplishment.

So, my question is this: when he went to the outpatient program did he confess that he had been lying to you? Or did someone take you aside to make you aware that these things were not true, but he still insists they are?

The lying you mention after outpatient doesn't sound like psychosis to me, though. Lying about anything and everything for no reason. That's not psychosis at all.