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I am very concerned that you are paying for his care. To be honest this isn't a good idea at all. If he is now indigent he should be on Medicaid and applications should be done. I think unless you are enormously wealthy it will take you a lifetime to save for your own care in future.
I would see an Elder Law Attorney--whichever of you is POA--to get straight what is happening here. First make an appointment with the administration of Dad's facility to get things straight, and to tell them an elder law attorney is your next stop.
Also request an ombudsman who may help you figure out just what is happening, what they can do, and what they cannot. I suspect they can raise the rates to whatever they wish. I doubt they can do retroactive collection when no notification was attempted.
I do not believe that you can increase rent without proper notice, meaning no retroactive increases but, I live in Arizona and we are a lot different then many states.
Personally, I would fight it and move my dad. This place is obviously operating under bad management. What's next?
But why are YOU paying for dad's stay in the Long Term Care facility?
I am sure others will actually give you and answer to your question and I will be interested in the replies you get.
His Social Security should be going towards the monthly cost minus whatever $ allowance the state of PA allows for their father($40-$80/month).
Medicaid then pays whatever the difference is, and the family should not have to pay one red penny.
Something here doesn't make sense to me. But like you, I am no Medicaid expert.