How can my friend get his mother out of a nursing home?

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She has dementia and was admitted for a 60 day stay in december of 2016 to receive physical therapy. Prior to her admittance she had been cared for at home around the clock by several care givers and one of her sons. She also had a compression fracture at the time of admission. Once she was admitted the nursing home decided to delay beginning PT. The nursing home told my friend that medicare would pay for her to stay there and receive PT, and since the year was about to roll over and become 2017 she could stay an additional 60 days. She has now been there for months. The nursing home refuses to allow her to come home even for a short visit. In order for my friend to be able to bring his mother home to live he would have to meet their list of criteria which seems unreasonable to me. He would have to have the approval of the administrator and caseworker at the nursing home, of her doctor, of his mother's caseworker at the Area Agency on Aging (who has stated straight out the she will never give it). There would also have to be two people working at all times and anyone working with her would have to be a CNA. My friend's mom can stand, but is unable to walk. What's funny is that as soon as my friend began talking in earnest about bringing his mom home, the PT immediately stopped. The reason given was that they wanted to back off on the therapy and see how she did without it......and of course its not even an option to bring her home if she isnt ambulatory. What the heck is going on here? And where do we begin in order to get her back home?

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Who is paying for her stay in the nh? Does anyone have guardianship? Why does your friend want to bring her home? Is she getting proper care where she is? Is your friend able to visit her often?

As dementia progresses it gets worse. Is there evidence that the level of care she had been receiving at home is no longer sufficient?

A nursing home is not a prison. It cannot refuse to allow a resident to leave, and it can make recommendations but not requirements for release. All of which makes me wonder about the back story here. Who has guardianship? How did they obtain it?

We'd need to know more about this situation to respond.
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Just reading your post it sounds like area on aging was called in and found that she needed to be receiving more care than she was getting. It sounds like the state has taken guardianship. Your friend could file for guardianship but if the state has it, it's not likely that your friend can take it over. He would probably need to have an elder attorney to look into her status. But then, the NH didn't say that the State has guardianship and they did give him a list of requirements. Generally pt is stopped when the patient is no longer making progress.
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