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If they want $3K more, they need to explain the more service you get.
Having paid caregivers from an Agency coming to your home, your wife would get undivided time and attention.
Living in an Alzheimer's facility, your wife would see the Aide first thing in the morning and again at bed time. The Aide would also pop in during the day to see how your wife is doing.
There are pros and cons to living at home, and living in a facility. It all depends on what is best for your wife.