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Babalou said it most succinctly: The real question us what level of care will he need going forward.
TO ALL: When you are signing documents for someone else...or even for YOURSELF, be certain you understand what you are obligating yourself to. Do not believe what someone with a monetary interest tells you your signature means.
The real question is, what level of care does he need going forward?
I have found at my Mom nursing home the nurses/aides will say a lot of positive things regarding my Mom to make the the family feel better. But armed with all the knowledge regarding my Mom's condition and that she is on Hospice, she is not getting better. She had refused any and all of the physical therapy. Oh there will be days where you see an ounce of improvement.... like she ate most of her meal.... and the next 3 days she will refuse any type of food.
You need to speak with his physical therapist and occupational therapist to see how he is doing, and ask them what is their personal opinion of him living on his own at home. Four months seems like quite a long time to get over a hip surgery unless he's not cooperating. I can understand the brain fog after surgery, that is very normal.
You don't mention his age or other physical issues. But unless there are other physically complicating factors, 4 months is a long time for rehab from hip surgery. I have a feeling the charges are running up b/c they anticipated he'd qualify for Medicaid, and that you're going to be stuck with a very large bill.