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Mother owns two houses (next to each other) She lives on a very meager income and the Daughter lives in the house next door. The Mother has cancer and needs assistance, but will not go into a convalescent homeHospital. She wants to stay in her home. The family wants to get Hospice for their Mother. If she gets Hospice, can the state take her home(s) away from her?

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Call a few hospice companies in your area and let them explain their services. Some have volunteers who will help. As has been explained Medicare pays for hospice care but not 24/7. Each case is different as to how much help is needed. They train the family to monitor the meds. And keep the patient comfortable. Your mothers dr should be able to tell you about what to expect. You can try the hospice service in her home and see how it's working for you. If you decide you need more care you can look for sitters. If your mom has less than six months to live there is no benefit to waiting to call hospice in that I am aware of. Most people say they wish they had called them earlier. See how it goes. If you need more help than they can provide you will soon know. They are a layer of care. Your family is another layer. Perhaps there are friends who will sit for a few hours while the daughter gets rest. I had a SIL who volunteered and there was no better comfort than to know
that Betty was there. The hospitals and nursing homes and hospice centers will still be there if they are needed. And as I understand it, if you end up needing Medicaid, they don't just take your mothers home. They file a lien. If the lien can't be paid off by the heirs, they sell the home, take the portion that they are owed and then the remainder is paid to the owners heirs. That happens after your mother has passed, needless to say. So now is the time to talk to the dr. To call hospice and learn all that you can. Now is the time for all of the family to be on notice to take care of themselves as they will need to rally around your mom and support the sister in taking care of mom. It's a time to pull together. Make sure mom has the necessary paperwork done. A DNR. Power of Attorney for medical and financial. A will. That her bank account has another name on it to pay the bills. That her beneficiaries are up to date on any life insurance policy she might have. If there is no help available be proud that your mom has been able to pay her own way by owning a home that she can exchange for her end of life care. You can find much of the information you need on this website. I'm sorry she is so ill. Take care and let us know how things are going.
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Thank you very much for your help. It is appreciated.
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Absolutely if she is placed in Hospice, somebody has to be there pretty much 24/7. Daddy required someone with him all day and night. Mother lived with him, of course, so night shift was hers with some respite. I did a lot of 4 hour respites so Mom could sleep during the day and get out of the house. Dad was not mobile at all, so not a fall risk, but he would choke on anything he tried to swallow and although we knew he was actively dying, we did not want him to choke on his own saliva! He was on morphine round the clock, we didn't even keep track of how much or how often. You cannot dose somebody, trot off to work and then check on them later in the day---that's crazy. You will need someone to check on him at least every 2 hours--and if this were my loved one, I wouldn't leave them at all. Just my opinion.
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Hospice is paid for by Medicare, and Medicare does not capture any assets from the patients.

Please note that Medicare does not do around the clock care.   They will bring in someone during the day but for a hour or so.   Thus the daughter would need to give her Mom care 24/7 and that can be exhausting.   Mom could hire a caregiver to help give daughter a break.

Now, if the Mother needs to go onto Medicaid, that's different, as Medicaid would want to be paid for their care by way of assets, such as a house.
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