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Over the past 6 months, 1 client has recurring bouts of C Diff. The family wishes to keep this quiet and not let anyone there know about their Mother's condition. Is there a moral responsibility to notify the facility management in order to protect the other residents?

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Definitely they should know. C. Diff in the elderly can be life threatening. Everyone should be taking extra sanitary precautions. I caught both C. Diff and MERSA when I worked in an ER in 2005. Both could have been prevented if the facility had been made aware early on.
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IMO, yes. Other caregivers are taking care of all the patients.
As I remember, C Diff is not killed by alcohol hand gel. You HAVE to wash with soap and water.
If no other nurses or aides know, are they using the gel thinking everything is OK?

If it was YOUR mother in the next bed would you want to know?
Report it.
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If your loved one was in this facility how would you want it handled?
Moral, legal, whatever, the facility management should absolutely know this. Why don't they already? Pretty serious thing to be dealing with--special hygiene precautions should be in place.
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Oh goodness, yes please inform management. That person should not be sharing a bathroom with other people. Management can take the appropriate precautions and maybe even use this as an opportunity to provide staff education on infection control and c.diff precautions. While infection control in services are mandatory twice a year (if I remember correctly) it certainly cannot hurt to assure new & old staff are re-trained on proper hand washing and infectious waste removal.
I would inform them ASAP as everyone in the place is at risk. 
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I'd worry more about the legal responsibility.
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You have to follow HIPPA regulations If the facility is not on a list that they can be informed of medical conditions you can not legally inform them. You might also check the regulations of the facility. If it states in their regulations that they must be informed of any "communicable disease" then you would have to tell the family that they have to inform the facility or you will have to.
It may also depend upon who you are being paid by. Is it the family or the facility? This would determine who your employer is.
You can however place a cart by the door and require everyone that enters the room to put on a gown, a mask and and gloves. (I bet they would get the idea)
You also need to follow Universal Precautions entering this room then going into the other rooms.
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Who diagnosed this? It should absolutely be part of her medical records and the facility should be informed. Her overall care could be changed due to this diagnosis and the precautions that are necessary to protect herself and others will be set in place.
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I think you'd better consult the infected client's doctor on where to draw the line between your duty of confidentiality and your duty of disclosure. You have a real ethical dilemma and I don't blame you for finding it difficult to know what to do.

Meanwhile, since this has been going on for six months and your other two clients are fine, your infection control procedures are evidently iron-clad. Well done. Trouble is, what if other people's aren't?
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I had to look it up and found this definition for "C Diff." : Clostridium difficile (klos-TRID-e-um dif-uh-SEEL), often called C. difficile or C. diff, is a bacterium that can cause symptoms ranging from diarrhea to life-threatening inflammation of the colon.
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My dad just got out of a rehab facility where the flu hit hard. At first it was just the ones that had the flu that were sequestered in their rooms then EVERY patient had to be whether they had the flu or not. Nurses, aids, housekeep, and visitors had to wear masks before they were even allowed in. If I found out one of my dad's roommates had the flu or C-dif the facility would have moved dad or the roommate to a different room! Could be the family doesn't want to bother or deal with this. If anyone in that facility gets it without knowing Big Time law suit!! If you don't want to get in trouble with the family do it anonymously. But management NEEDS to know. Who cares about the &%#@ family?? They certainly don't care about anyone else!!
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