How can we contest a POA?

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We are in Alabama. Seven siblings, one has POA, grandmother in nursing home after a stroke. Rather than bring her home, the one with the POA is choosing to let her stay in the nursing home. Since she's been there more than 90 days. The state is going to put a lien on the home, her car, life insurance and everything else that she owns. She made this decision without talking with ANY of her brothers and sisters, of course they are against this. The deadline is July 10th. Is there anything they can do?

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What does Grandma want?
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Sounds like grandma picked the one she trusted to be POA. You can get a lawyer and try to prove in court that the POA is not acting in Grandma's best interest, but an argument that you don't want Grandma's assets going towards her care because you want them yourselves is not going to serve your case well.
You will have to prove that the PoA is stealing from Grandma or not using Grandma's money to take care of her properly.
Then, the court (If Grandma is incompetent) would possibly appoint a guardian for her.
If Grandma is competent, she can revoke the PoA, but from the information you gave, it sounds like that is not the case.
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Nisha,
It depends...
How old is gram and does the person with POA have
FINANCIAL  POA AND
 a POA for Medical Care decisions?  There is a difference.

After only 90 days, someone it appears is not on top of the financials to start with.
So come back for the wealth of information these caregivers can discuss with you if you provide more information.
Dr. Kernisan is my favorite geriatric care specialist whom I read all the time!
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The OP appears to have left the building. We don't have enough info to answer the question except to say, "It depends..."
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I agree, sounds like POA Is filing for Medicaid. You don't say how old GMom is. The stroke my have been a dibilitating one and GM needs more care than POA can give. You need to have a family meeting and get the particulars. Maybe one of u will care for her. POA doesn't mean she has to physically care for her.
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You cannot contest a POA. The only thing you can do is offer a better solution. Nursing homes don't want to keep people who are well. It sounds like she went from a rehab unit to a long term unit, perhaps because she has not gotten well enough to go home. (Fyi, people in long term units can still get physical therapy.) It also sounds like you're concerned the nursing home will take her money, but as jeannegibbs noted, her money will be required for her care regardless. If your concern is that the nursing home is a dump, or you're unhappy with the care she's receiving (you visit regularly, right?) then you can research other nursing homes in your area, tour them, and find a better option. If you just don't want your loved one in a nursing home, that's understandable. But then you need to come up with a great alternative for your grandmother to get the same level of care the nursing home provides, and that will be tough. Good luck.
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If this elder does not have or need guardianship, I would go ahead and go pick her up and bring her back home if she is able to live at home. Another thing I would do is call my state bar association and tell them what's going on. I would also overturn the POA and have this particular one removed. What you may want to do is have an eldercare lawyer step in and help this particular elder protect her assets before the state has a chance to grab them. 

What you may explore is a TOD account for the home and possibly even the car. If there is a TOD in place, the state can't grab those assets. This is what my bio dad did with his house and no one could touch it
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You don't mention if the elder has applied for Medicaid. That is a big missing puzzle piece.
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Why specifically is everyone but the POA against this?
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