The 49-year-old actress - who split from husband Ashton Kutcher in November amid speculation he had cheated on her - was hospitalised last week after she suffered a seizure and is said to be struggling with the fact her troubles, rumours to include anorexia and substance abuse, have been the focus of so much scrutiny.
A source said: "Ego-wise, this is the worst thing that could happen to Demi, because she's such a private person. She's embarrassed."
Demi is a follower of Kabbalah - a mystical offshoot of Judaism - and the faith believes her troubles are a "gift" which she can learn and grow from.
An insider told People.com: "[Her problems] can be an opportunity, a blessing, and not a curse.
"The right intervention happened in her life. From a spiritual sense, it is a gift. She has a real opportunity to grow from it. She has to take responsibility for her life."
It has been claimed that Demi is refusing to enter rehab, despite being urged by daughters Rumer, 23, Scout, 20, and Tallulah to seek help.
A source said: "Demi needs help but she's not ready to get it. She doesn't want to check into rehab even though her daughters want her to, especially Rumer, who was at home and witnessed her convulsing Demi thinks her problems are emotional and that she doesn't need rehab."
Instead, Demi - who is reported to have "smoked something" at the party before she had the seizure and has become dependent on Red Bull and prescription drugs - has been undergoing "spiritual counselling" since being released from Sherman Oaks Hospital last week.