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Not being able to feed or toilet herself is a good reason to say no, not caring for this person. If the person is in their own home, its called an "unsafe" discharge to release them to home without someone to care for them and proper equipment and needs put in place.
What relation is this 88 year old to you?
What medical conditions does she have that preclude her ability to do her own feeding and taking care of herself in the bathroom?
Are you the POA or guardian of this elder?
We will be able, hopefully, to help if we know what's going on. Wishing you the best of luck.
But if you're not her POA or guardian, then there's not much you can do. It will be up to that person to place her.
What else to do is decided by what outcome you are hoping for and what she is actually capable of.
Is she unable to feed/toilet herself due to an injury or illness (hence the PT) or from her progressing dementia? Is she completely bedbound?
Maybe consider LTC in a good facility (and if she qualifies, Medicaid will cover this along with her SS). Or is she ready for hospice?
Thanks for any other info you can provide about her situation, and yours.