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I do not know if this is feasible or whether privacy issues would be of a concern. I know that camera monitors are used in private homes to observe child care workers and nannies. Does anyone know the answer?

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WHOA, cameras cannot be installed for many reasons. One is the expectation of privacy for the patient. BUT if the patient knows and can talk to you, different story. Anybody can Skype.
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Read the contract to see if there is anything regarding cameras. If not, set one up...It may get stollen. Grandma was in a facility all her clothes were being stollen, ,until my aunt decided to write her last name in big block letters on the outside of the garments, both front and back. Never happened again.
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Wow. Great idea and if the nursing home is above board they shouldn't care if there are cameras. Think about this - caregivers for children are now being watched by the children's parents, why not have cameras in nursing homes to make sure people know they are being watched and do the right thing. :)

Yes, the proverbial Big Brother is watching and a facility to which both Medicaid and personal monies are being sent to may just need some watching.
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Yes, only on the parent to make sure there is no abuse going on. I do understand that abuse outside of the room could possibly take place and I would not be able to monitor them 24/7.
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I think you'd have to make arrangements directly with the admins of the facility, who might not appreciate being under remote camera scrutiny. The admins would probably take the position that they provide adequate care and there's no need for monitoring.

I'd be interested in learning what any response is if you do approach any facility with this issue.

As to privacy issues, the camera would be presumably only be focused on your parent and not the roommate.
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