Hi Forestrymom,
hens can recover from a prolapse, though it can be difficult. I'll try to summarise what to do as I understand it.
The prolapse needs to be gently wiped with a sugar-water solution (sugar helps draw the prolapse inward) and then very carefully helped back into the bird. Holding the bird with her bottom up will help via gravity. Use a soft gauze pad or something similar to do the pushing. Then she needs to be put into a dark quiet crate somewhere. (Some people say anti-haemorrhoid creams can help a prolapse stay inside... Not sure about that myself as I've never used it.) The prolapse needs to be checked regularly to make sure it stays put. However the reality is it will probably come out again and if it happens often, things are grim...
If the prolapse goes back to normal then she needs to be brought off the lay as soon as possible. This means a darkened crate or room, and only feed grain for a week or so. Best would be either plain wheat or cracked oats. This will stop her laying, start her moulting (changing/shedding feathers), and may give her system time to heal.
However if whatever's hanging out is not fleshy but seems to be part of a broken egg membrane, it should come out, not go back in. A prolapse is usually rather pink looking and the vent itself will be wider and redder than normal.
Your husband may want to cull as he may know a prolapsing bird will probably develop the condition again in future however that depends on the cause. Laying soft shelled eggs can definitely cause a prolapse due to straining (the soft eggs don't pass as easily, because muscle contractions have nothing to push against). If the soft egg laying resolves then she may not prolapse again.
EDIT: oops, missed other question. The chicks won't eat the shell grit until they need it, so having some out in a hopper won't hurt them at all.
Hope this helps,
Erica