The 23-year-old is haunted by her reputation as a Hollywood wildchild following previous stints in rehab and arrests for driving under the influence.
She was horrified when her publicist called her to check out gossip claiming the star has been hospitalised.
A spokesperson for the actress spoke out on Thursday (17Sep09) to deny the rumours, insisting Lohan is now in Texas shooting the Grindhouse spin-off movie.
And Lohan logged on to Twitter.com on the same day to address the gossip.
She wrote, "Hahahaha my publicist just called me & said she heard I was in a psych ward!!!! Hahaha WHAT IS WRONG with people???? I'm working lol (laugh out loud).
"BUT that's one I've NEVER heard about myself before! New ones r (sic) always interesting huh? There's SO much more going on in the world! Wake up."