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So, her having cognitive issues is the main problem. You need to report her to the DMV. They will most likely send her a letter telling her to come in for retesting. Whether she makes the appointment and shows up for that test is another story. No one in her friend group should tell her, remind her or take her.
It may be better to have a convo with her about being an "elder orphan" and needing a PoA so that she doesn't wind up as a ward of the county.
If she loses her driving privilege, hopefully her friend group will be willing to take her places.
If you are all such good friends, suggest to the others that you all help the sick friend get where she needs to go. She may be terrified of not being able to get to the doctor, stores, a park, a restaurant. Assure her that you'll help, then do it. It is hard to be an elderly woman and need to have a medical procedure, for instance, and have no one to take you and stay with you afterward.
I would inform my friend that I am doing so.
Guess that would be the end of the friendship, but it may save a life or two as well.
You certainly can communicate this to her MD. However, the MD cannot discuss her with you due to privacy rights, so you would not know outcome of this.
My Grandson is a epileptic. His Dr. Informed DMV of his seizures and DMV sent my grandson a letter asking that he turn in his licence. In my State you have to be Seizure free for a year and have a doctor confirm this and that meds seem to be keeping it under control. You take that letter back to the DMV to have your licence re- issued.