Britney Spears

Britney Spears's Dad Jamie Breaks Down

By Mary Margaret

01/05/2008 at 07:00 PM EST

A father's nightmare took a turn for the worst. After keeping watch of his daughter at Cedars-Sinai hospital, Britney Spears's dad Jamie Spears broke into tears shortly after her discharge Saturday morning.

"Jamie was really upset," a source tells PEOPLE, "He was in tears. When he got to the house and realized the situation there, it broke him down."

He and his eldest daughter have had a rocky relationship, but with his ex-wife Lynne and youngest daughter Jamie-Lynn traveling back home to Louisiana, he was the sole Spears family member on scene during her mental evaluation. "[Jamie] thought he understood what was going on," the source adds, but now, "He doesn't know what to do. Everyone is trying to figure out the best thing to do, but who knows what that is now."

Spears was able to accept visitors during her stay, and Dr. Phil McGraw – whom Jamie considers "a god," the source says – advised her father while at the hospital. He told Spears that his daughter's release was "one of the worst decisions that could have been made."