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With the exception of the geriatric behavioral hospital, none of the assisted living/rehab hospital settings where he was admitted were licensed to use a geri chair with the tray because it is considered a restraint. We actually purchased a geri chair for him a couple months ago but just didn't use the tray. The issue moving forward will be finding a senior living arrangement that will accept him due to history of behavior/fall risk.
Since my initial post, I learned after speaking with our senior care advisor that (at least in Texas) the type of facility he needs is a "type B" facility which has certifications required to use a geri chair with tray as a tool for patients who repeatedly and persistently try to walk without assistance and are high fall risk.
Again, thank you for taking the time to respond, this is such a great site and resource for caregivers. I greatly appreciate the supportive community. Happy to report we are going to tour a few homes next week that seem to be a good fit for my father in law's needs!