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Once in the hospital, your Dad can refuse to let his Mom come back home by saying there is no longer anyone there to be her caregiver. Your Dad is burnt out. What happens next is that his Mom will be placed in a nursing home, and there should be a Case Worker he can talk to regarding how Medicaid works in their State. Once accepted by Medicaid to live in a nursing home, Medicaid will pay for everything. Note, your Dad should not sign the entrance papers, only his brother who is Grandmother's financial Power of Attorney.
Please note, if your Grandmother owns her own house, that later down the road when the time comes that she passes, Medicaid will place a lien on her house. Once the house is sold, Medicaid will be reimbursed as this program is a taxpayer funded program.
Please let us know what happens.
You should call APS and report this situation because no one is doing right by your grandmother. That is the unfortunate reality now.
As others have said, he has to be willing to do this as there is no other solution really. But it is a solution. Even if the county comes in and gets legal guardianship of the Mom, she will get the care and protection she needs. Our family had a good experience with a court-assign guardian for my SFIL. It solved the problem for all involved.
40% of caregivers caring for someone with dementia will die before the one they're caring for from stress related issues. That could very well be your dad if he doesn't make some changes soon.
Your dad needs to have a come to Jesus meeting with his brother and tell him that he can no longer do this and that his brother has 2 weeks to find alternative care for their mother, or he is moving out and she will be on her own.
If your dads brother is the financial POA in this situation, he'll have to figure things out for his mother.
But in the meantime have your dad call APS, Senior Services and his local Area Agency on Aging to see what kind of help may be available until his mother gets placed .
He has to want to.