Medicaid suspended; can the nursing home release my mother in her current condition?

Hello, I recently learned that one of my siblings (Power of Attorney) has taken the proceeds from the sale of my mother's house. My mother relocated to a nursing home about two years prior to when her house was sold. My brother did not inform me or my other 4 siblings about selling the property. A trust account for my mother's assets was never established. My brother has filed his own personal bankruptcy and now tells us that all the money from the sale of our mother's house has been spent, over $200,000 net. Medicaid has suspended my mother's payments since proceeds were never reported by my brother. The nursing home says she will need to be released if payment (approximately $30,000) isn't paid next week. My mother is in her 90's. My Power-of-Attorney brother has mis-managed her estate and is now asking to me and our other siblings) to fix the issue. Except for one other sibling, we are all located out of state. It would be dangerous for my mother to be released now. Can the nursing home release my mother in her current condition? Can they sue the family, and/or bring lawsuit against my brother (with Power of Attorney) though he has filed bankruptcy? Thank you for your feedback.