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Medicaid is for longterm care and does expect assets to be spent down if you want them to foot the bill for care in a Nursing home. The home also receives any SS and/or pension towards a persons care.
Looks like shad250 understands what you were told. You really need to talk to the Social Worker to understand what it is Mom will need. There are many LTC and rehab facilities that won't take a patient with a trach because of infection. So make sure you and Mom understand everything. Ask questions. Don't assume.
Medicare will pay, with no extra cost from her, if she is transferred directly from acute care (which seems to be your case), or admitted to LTACH within 60 days from being discharged from inpatient hospital stay.
A determination on what to do next, would come after her time at the LTACH would be done.
Sell her house and use that money to pay for her care. Do not transfer any of her money to you. Google Medicaid look back and MERP - Medicaid Estate Recovery.
Sorry, but her assets, yes all of them, are for her care.