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I cannot imagine doing this without 24/7 attendant in all honesty, because while she may have one on one help for 12 hours, what about the other 12. This sort of thing only get worse in night hours.
I agree that this is almost impossible from hours away. But the fact is that you have been told the truth. They cannot handle this level of care, and your poor Sis may actually have to be housed eventually in a psychiatric facility where she can be medicated to some minimally functional level.
I am terribly sorry. My own brother, with probable early Lewy's dementia was in ALF. He was well, capable, kind, gentle, and he had a community he lived with who were much the same. When someone was out of control they could no longer stay in the ALF cottages and had to move on to MC. They would have greatly disrupted those living in peace, doing activities, and under control. This wouldn't have been allowed, quite honestly for even a day.
These are private facilities. You quite honestly have no options, and they are correct; this isn't a good placement for your Sis.
This is WAY above what Assisted Living is designed for.