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Hopefully her doctor is able to share with her the danger and damage that can happen from staying in bed too much, and perhaps like BarbBrooklyn said below, order some in home PT for her.
But honestly, the best thing may be for her at this point is to be put in a nursing facility where she will receive the care she requires, be around people her own age and get to eat with others as well.
You have to now do what is best for her, and if money is an issue she can apply for Medicaid.
Staying in bed is going to cause her to lose muscle mass and mobility.
Is there underlying depression in play? That is eminently treatable with meds.
Home Physical Therapy can be ordered by the doctor to improve her mobility and stamina.
Does she self-administer the insulin? I think that needs to stop; no meal, insulin dosage needs to be adjusted. Something to discuss with the doc as well.