Would the rehab place let my Dad go home if he wants to and if he can walk?

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What was the reason for the stay in rehab? If it's something like a hip fracture, he likely would need as much therapy on smooth carpeted floors with hand rails as he can get before he tackles rehab at home.

Remember that unless you have extensive modifications at home, he won't have wheelchair access to bathroom counters, long corridors in which to practice walking, etc.

If he comes home too early and finds that he needs more therapy, he'll either have to have it at home or go to a therapy facility, where his visits will be limited under Medicare coverage.

Home PT is helpful but by no means as helpful as in a facility where equipment can assist with recovery.
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Rehab isn't a prison sentence. People can leave, although leaving against medical advice may impact insurance payments.

Generally it is best for the patient to take advantage of therapy and healing time.

What is your dad's situation.
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Is there a reason you want to bring him home early? The rehab place can't hold your father against his will, but there may be more for him to accomplish. Many times people want to go home, but it is better for them and their caregivers if they complete treatment. If released too early, the patient may just be back sooner if he isn't as capable as he could be.
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