Could this gain in 2014 disqualify my mother-in-law from Medicaid?

Hi everyone, I've got a complicated (or at least what I think is complicated) lookback question. My mother-in-law is in need of long-term care at a skilled nursing facility. She would otherwise qualify for Medicaid except for a 2014 transfer. In 2014, she sold her mother’s house and made about $40,000.00. She used the $40,000.00 for living/medical expenses and paying down my wife’s student loans. My wife’s student loans were actually taken out in my wife’s name by my mother-in-law (unbeknownst to my wife), and my mother-in-law used most of those funds for living, medical, entertainment, etc. expenses. My understanding is that this $40,000 in 2014 could potentially disqualify her from Medicaid benefits because of the 5 year look back. However, I’m not familiar at all with Medicaid, and I’m looking for guidance and advice as to how best handle this situation. Will the $40,000 2014 gain disqualify her? Are there exceptions or work-arounds on the 5 year gain lookback? She is located in Louisiana. This is all very stressful, so thank you in advance for any help. I truly appreciate it.