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Sure, a nursing home can discontinue having someone staying in their facility. They cannot however wheel their bed out onto the curb and throw all their stuff next to it.
They can discharge Monika001's mother into a hospital. Then the hospital will have to find her placement somewhere else.
This will probably cause her to lose her Medicaid eligibility until it is spent down but, I would speak with a certified elderly law attorney and find out exactly how to do this.
You can use some of the money to buy her things she needs and that would be nice for her to have, like a really great wheelchair, new dentures or hearing aids, glasses, new clothes and shoes. It just has to be used for her and her legitimate bills.
I am sorry that you are having to face the change of your mom losing her independence, it is a very difficult transition for most of us. Learn to love her where she is and bring sunshine with you when you visit, no matter how gloomy you feel. It real will help you when you see her smile with you. Great big warm hug! You will get through this difficult time.
In my instance, I stopped paying taxes on Moms house. I unplugged every appliance. I kept one light on a timer to go on at Sunset and go off at 11pm. I kept the heater on 55 so the pipes wouldn't freeze. I was just about to cut off the water and the heat when the house sold. Medicaid may not allow you to recoup any out of pocket. My Mom had passed by the time her house sold. The Medicaid lean and tax leans were satisfied and I was able to recoup my OP expenses.
I was at a loss as what to do here and reached out to an elder lawyer. The lawyer told me that the nursing home was ONE of my father's bills. It was not his only bill though. He had many others that also needed paying. So I did not just hand his SS and pension right over to the nursing home because they demanded it.
I don't know if you've spoken with Medicare and her secondary insurance. If not then you have to communicate with these people and get written statements because your mom like my father may be covered by temporary Medicaid already. The nursing home will also collect cash-pay along with Medicaid paying as well. They tried to pull this when my father was with them. They do it all the time, so you have to scrutinize everything. DO NOT sign any documents. DO NOT give them any of your mom's banking information, or her social security number. Demand that they send you a written bill every month then look then check with who her Medicaid caseworker is. She has one because the nursing home reached out to Medicaid the day she arrived, trust me. Make them give you a name. With Medicaid, you will have to list your mother's property for sale. That keeps them at bay and will buy you some time to figure out how to take her to live with you if that's what you want to do. Contact Legal-Aid in your state and speak to an elder law attorney. It's free and they can help you. They helped me. Good luck.
NH can legally discharge or evict a resident legally, if they go to the hospital. They can state that the care needed after the hospital visit would be more then they could do. They'll get busy as soon as the resident is admitted to the hospital.
With all respect to you, Monika001 should not do this. She does not have to allow the nursing home any access to her mother's bank accounts or anything else. Yes, the nursing home bill has to be paid, but they are not the only outstanding bill that has to get paid. Why should she make it so easy for them to clean out whatever her mother has in a matter of a couple of months?
If she wants her mom with her and wants to have a go at living together and being her caregiver, then she should certainly try.
I had to deal with a foreclosure with my in-laws. They were broke and underwater on their 2nd mortgage -- they'd never pay it off in their lifetimes so why continue putting money into it? So we paid a very minimum amount towards to mortgage to buy time from the foreclosure. We didn't ask permission, we just paid a little and used their SS funds to cover their expenses, which were mounting from their various and frequent falls and other problems. Maybe same with your mom's house -- no point in paying towards something she'll never actually own and now is just a money pit.
I'm confused if you say she's on Medicaid yet the facility is still demanding money. Do you mean she's on Medicare? They are very different. Medicare doesn't pay for residence in a facility, it pays for healthcare when you're 65 or older (it's a national benefits program). Medicaid is run by each state and is for the financially needy to pay for AL (depending on your state), MC and LTC for the elderly, among other things.
Are you your mother's DPoA? If not I would have her assign someone who is willing and able to carry out these duties on her behalf. You will need the help of an elder law attorney. Also, please see if you can talk to a Medicaid planner to help you navigate that (there's important stuff you need to know in advance).
Please do not think about taking her back into the home -- it's most likely not handicap accessible and you are only 1 person. She will need 24/7 care and it will be overwhelming and exhausting to you. I doubt that's what your mom would want. Keep her in the facility and maybe she will improve, but if PT says she has stalled out in her progress they won't order any more for her, even if you offered to pay for it yourself (and not through Medicare). I wish you much clarity, wisdom and peace in your heart as you work towards helping your mom.