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Will the current nursing home put her out on the curb? Are they legally obligated to find her some type of community care? Her family is not able to pay for her care, nor bring her home. She can not walk, nor get around on her own, and needs care.

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Medicaid is asking for 5 years of bank statements and verification of receipts/invoices/deposits/withdrawals of anything over $200.

How on earth does someone obtain ALL those statements from the bank?
How much paper will that take to print ALL those statement?
Plus I don't have all the receipts or invoices for anything over $200.

I'm at a total loss and have been very overwhelmed by this to where it's almost
making me sick.
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Care, banks are very used to getting multiple years of bank statements for government entities like IRS, Medicaid, Social Security for Disability -- the main thing is that the account holder or power of attorney gives permission and pays for the printing. They will tell you the cost up front before they do the work. That is the easiest part of the process. If you have more than 1 bank, you ask each bank to provide the info. You can use your mother's assets to pay for this - Medicaid understands that expense is related to her qualifying.
If she has investments (hah for many of us), you can request copies from the investment company. Prior tax returns that Mom filed will show what companies she reported income from.
Credit card companies can also give you the copies of prior years' statements. If bank transactions included payment of credit cards, then you will have transactions to support part of the expenses.
Withdrawals of cash? Trickier to support, I agree.
This is what Medicaid is looking for. Mom makes $2000 per month in social security, pension, etc.-in 5 years she made $120,000. Mom owned a house for $100,000; maybe sold it. So in 5 years Medicaid is looking to see how that $220,000 was spent. There should be expenses by check or debit that follow house or apartment expenses, utilities, groceries, medications, etc. If there are patterns of regular withdrawals, Medicaid wants to make sure that Mom was not gifting away assets that could have been used for her care to family and friends. It's not uncommon on this board to have folks who want to get Medicaid for family member and keep parent's money for family. If Mom was paying folks for care, then there should be supporting documents for the caregiving through tax returns etc. The same way the IRS looks for support of tax deductions for charitable giving or business expenses, medicaid is looking to make sure that legitimate expenses reduced parent assets.
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Sometimes there is a social worker at the nursing home who can help you with the medicaid application.
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You need to consult an elder care lawyer ASAP. It will be worth every penny.....I applied for Medicaid for MY mother, and the visiting nurse came to the house and helped me with the application. (we had already had all our paperwork in order, the will, the quit-claim deed on the house, the poa, etc.) I went to the bank and they handed over - without a peep- the last five years of Mom's bank statements and copies of cancelled checks. NO. CHARGE. Medicaid definitely looked at those checks with an eagle eye, anything over a certain amount was flagged, and they would send me letters saying, 'In 2016 there was a check written to ___ for ____' and what was that...If it was for home repair, I would send in a copy of the invoice. If it was a loan and paid back, I would make a note of when, who, how. The people at our Medicaid office were very nice and acommodating, can't say they are everywhere....Everyone reading this, please get with the program and don't delay. In the years to come, Republicans will make us all destitute while they buy yachts and stillettoes for their expensive mail order wh*ores. We will all be dying in the hospital parking lots. Just so you know.  If not us, your children and your grandchildren.  Some already working 2 or 3 part time jobs, as does my own bright and beautiful college graduate.
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Why not Medicaid approved? Read about what bryort posts. Schizophrenic Parent was evicted from facility and state would not step in when parent ran out of money, Medicaid was denied, and no options. Pretty stark. Nursing home has to get paid for care and Medicaid is the option.
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Not sure why the NH cannot help u with a Medicaid application. Lots of people transition from private pay to Medicaid. You need to talk to the Social Worker at the facility.
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Are you saying that Medicaid approval is "pending" or has it been denied? If the NH accepts Medicaid patients, they will in all likelihood allow patient to stay "Medicaid Pending" as long as the application contained no red flags.
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Maybe you need to pay some of that money she has left to consult a lawyer and get this overwith!
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A good elder attorney would easily be able to sort through this and let you know your options. I know it will cost to get an attorney but this will save you a lot of grief. Yes a NH can dismiss you for failure to pay. 42 U.S. Code § 1396r - Requirements for nursing facilities.
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Also I’d be concerned that if not dealt with soon, that the NH (who also gets a notification of the situation from Medicaid) will do a “30 day notice” to mom. Basically it’s 30 day payment plan done for the future or evicted. Now mom isn’t put on the curb but rather the facility will contact APS and ask for mom to be made an emergency ward of the state with a court appointed guardian. This is serious as they take over. That house is still owed by your mom, the guardian can sell it to provide for income for her care. The LBD only comes into play after mom dies. Whether you or your brother live in the house doesn’t matter. It’s an asset that can be sold.

At my moms first NH there was a lady across hall from mom. Her son got her on Medicaid but she continued to own her very modest home. He sold it and kept the $. She became ineligible for Medicaid. Apparently this drama going on for a few months, 30 day notice sent, bills sent, he ignored all. APS contacted; Guardian appointed who moved her to another NH. Sonny found out when he came to visit her. Huge commotion. Cops called to escort him out. What I was told was that APS would look to file charges against him for taking advantage of a vulnerable adult. NH would turn acct over in his nameto collections Things like this can snowball. Really make the time to get information gathered, put into document form &. get to the state ASAP to get it resolved soon. If you can’t do it, please then hire a NAELA level elder law atty to deal with this. 
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