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Anyone ever have a loved one "graduate" from Hospice? Hospice worked and allowed my aunt to rest and rally back to moderate health. Although still weak, she is not considered terminally ill. Now I'm on the path of how to transition her to a nursing home (she will insist on living in her home but not an option as I live 3 hours away and no local family). Not sure if I should find a nursing home near where I live or in her home town…also need to figure out how to pay for it all….any insights?

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Strictly my opinion, but I would move her closer to you so you can be her advocate at the nursing home and visit regularly. It's a lot harder to be her advocate several hours away, which means it would primarily be over the phone. So many nursing homes are understaffed and, therefore, neglectful of the residents. She'll need family closer by to supplement her care.
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Well the good news is she didn't die! I helped my mother beat hospice twice, until the last one, but since she is able to maintain her status consult a social worker about possible options. (There was one with hospice). She can use her money, your money, or pay down her wealth to receive Medicaid. Any insurance policies? If she is the widow of a retired veteran, she has access to the VA nursing home. Good luck and I hope she has many more years!
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Try to keep her in her home town if she has friends who will visit. The hospice discharge coordinator and you need to have a chat about where she will go. Her MD can recommend visiting nurses, PT, OT and he needs to be part of the conversation, too. Best wishes to you. Just because she graduated hospice doesn't mean she gets cut loose without help.
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