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Thanks Guestshopadmin, I saw that Medicare page and got hung up trying to figure out if "short-term" had a specific maximum duration. MIL was suppose to come home today, but last night started experiencing discomfort and difficulty breathing. They upped the pain medication dosage, and is now qualified (I assume because she is receiving "treatment") to stay longer at in-patient hospice.
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Remember, hospice doesn't pay for room and board. If MIL was admitted to an inpatient facility and you were NOT being charged anything, she was probably admitted under respite benefit. A hospice company is paid a flat rate for care provided under the hospice benefit by Medicare per period. So in-house hospice service stays in facility AT NO OR MINIMAL COST to the patient are LIMITED by both provider and Medicare. In my experience, this is hospice personnel that think a person has less than a week and they are trying to spare family an event at home...
Here is a medicare document that discusses benefit.
medicare.gov/Pubs/pdf/02154-Medicare-Hospice-Benefits.PDF
On page 9 it specifically states about Medicare Hospice
■ Room and board. Medicare doesn’t cover room and
board. However, if the hospice team determines that you
need short-term inpatient or respite care services that they
arrange, Medicare will cover your stay in the facility. You
may have to pay a small copayment for the respite stay.
Definition of Respite care—Temporary care provided in a nursing home, hospice inpatient facility, or hospital so that a family member or friend who is the patient’s caregiver can rest or take some time off.
Discussion of length of respite care defined by Medicare:
If your usual caregiver (like a family member) needs rest, you can get inpatient respite care in a Medicare-approved facility (like a hospice inpatient facility, hospital, or nursing home). Your hospice provider will arrange this for you. You can stay up to 5 days each time you get respite care. You can get respite care more than once, but only on an occasional basis.
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Thank you all for your answers and advice. Wife is not in a state of shock as we knew over a year ago things were going to go bad eventually. In fact, wife and MIL are both in good spirits considering the situation. I don't think the in-patient hospice was short of beds, and even if they were, I don't see that as their reason for their wanting to discharge a patient (I do understand that if it were a hospital). MIL will be returning home in about a day, where we will continue the home hospice care that she was receiving before her trip to the ER.
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I don't know why MIL no longer qualifies for inpatient Hospice under Medicare. I think I would check with medicare about that. It is possible that Hospice beds are so limited that need the space and are using Medicare as an excuse.
let hospice guide you in the equipment etc that they will provide. Don't refuse anything offered because you might need it later. Try and line up extra help so you and your wife don't get exhausted by all this.
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Because hospitals in general are not nice places to be; because there will be other patients yet to be stabilised who need the beds more; and because there is nothing that can be done for your MIL in hospital that cannot be done equally well at her home.

Is your wife in a state of shock over this? If so, perhaps the best thing you can do to help is support her in discussions with the discharge team and tackle practical tasks like telephone calls or equipment delivery or getting in supplies?

Is there any reason why your MIL's home should not be the right place for her to be? Is there anything wrong with it? Keep talking to the discharge planning team, they won't send her anywhere that isn't safe.
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after a trip to the ER, my mother-in-law was transferred to an in-patient hospice facility (late stage lung cancer). After about four days there, the nurse and social worker told my wife that she no longer qualifies for (Medicare funded) in-patient hospice care (no outward discomfort, no labored breathing) and that she would need to leave in 2 to 3 days. I checked the Medicare web page and they state that they cover short-term in-patient hospice care, but I couldn't determine what is considered short-term. So here I'm thinking she only has a few days left (according to the ER doctor), but since they've done a good job making her comfortable (mainly through drugs), why are they trying to send her home (albeit with home hospice care). Thanks.
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Can you elaborate on your question. Here are some observations that may (or may not) help you. When my Mom had hospice help in a memory care place, she was diagnosed with MRSA. Facility could not keep her, but the hospice org brought her to in-patient hospice care. She was there for almost 3 weeks until she was considered MRSA-FREE. She went back to the facility continuing on hospice care. Six weeks later I noticed a SIGNIFICANT change and called the hospice team to come and evaluate. They determined she was near the end and offered to help her in the memory care place or at their in-patient center. I opted for the in-patient location. She passed 4 days later.
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