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Is she competent enough and physically capable enough to learn to give herself insulin? If she can be taught to self test and inject then she can tend to her own diabetic needs. If she is not able to do this, one or another member of the family might be able to assist with this. It beats everyone driving 3 hours round trip to visit. The money you all save on gas by not traveling to see her could be spent on a private caretaker for a couple of hours a day to shop/cook tidy the house, if the family members are busy .
The other thing you need to know is that you can get her released from a nursing home. They cannot keep her there if she and family want her home. Nursing homes might give you a hard time because they make money by having her there ( from insurance or medicare). But I have assisted in getting people released from nursing homes after they have been admitted , if there was competent and comprehensive care by family at home, and proper community medical follow up.
I hope you have some success with this. If she wants to be home, she can be. There are alternatives to nursing homes for long term care.
Care home is what?? Assisted living? My mom, as a brittle diabetic (really really bad diabetes) did fine in assisted living. Don't let them bully your family around!
One doctor told me don't overthink it - I didn't care too much for his opinion
I suspect if your nanny needs insulin injections that this is why she will need skilled nurses not just custodial care of room and board
Place her the best place you can - folks at my mom's facility come from all over and visit once a week
Hospitals and doctors do keep lists of NHs to help people who need to find them. Doesn't necessarily mean you have to pick only from those ones, does it? Has someone said so?