Aggravated assault carries a maximum of 20 years in prison. You can't really "push for time in a hospital versus jail" with the reason being too complicated to explain in this forum. You need to hire your son an experienced lawyer immediately. That lawyer can help devise a plan so his life is not "ruined forever." Feel free to call me if you would like to discuss this situation in more detail.
Your step-son needs to have an experienced attorney representing his interests. If the prosecutor does not believe that you, as the victim, are pushing for severe punishment in the case they may be more willing to consider alternative sentencing, but they won't just let you dismiss the charges (they control the prosecution of the case).
He needs an attorney working on his behalf right away.
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Here is information to contact the victim advocates at the office of Tommy K. Floyd, Henry County District Attorney: Tel: (770) 288-6400 / http://www.co.henry.ga.us/DistrictAttorney/VictimServices.shtml.
Besides hiring your step-son and experienced local attorney, you should contact the victim advocate and demand an meeting with Mr. Floyd. When I was a prosecutor, folks who did that often found family issues resolve themselves according to family wishes.
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The best way you can help him is to get him an attorney. He needs an attorney immediately. The attorney should do what is best and in the best interest of the client. If he does not have an attorney and you would like to discuss the matter further, please feel free to give my office a call at 404-636-6616.