Trivia: Before Michael attacks and kills those two radio show hosts in the gas station bathroom watch carefully. The scene bears a resemblance to the way he stalked a woman for her car keys in Halloween: H20.
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Answer: You could argue that Laurie is "unfinished business" for Michael, since she escaped him years ago. But it's important to note that in the movie, Michael doesn't seem to be going after her specifically at first. He arrives in town and just begins to start randomly killing people again. He doesn't really go after Laurie until the doctor specifically drives him to her neck of the woods, because he (the doctor) is obsessed with the idea of Michael and Laurie encountering each other again. So there is also the chance that she wasn't really Michael's target at all. I think it's kind of purposely left ambiguous what Michael's "goals" are in the film. As for the second question, it's answered in the opening scene - he's been at the hospital to be studied. But the state has lost interest in the case since no real developments have occurred. So rather than wasting more time/resources on him, they're instead dumping him into a maximum security facility where he'll basically be left to rot.
TedStixon