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We are wanting to move my mother back to assisted living on the day she has been released by the doctor and they are telling us medicare will not pay if the person leaves on the same day they are released.

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Medicare does not pay for Assisted Living. The other problem is that the Assisted living place has to re-evaluate her to be sure she is still suitable for their facility. If you are thinking about pulling her out of rehab AMA (against medical orders) you could get stuck with a big bill, then you arrive at the ALF without a re-evaluation and they won't take her back.
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This sounds bizarre - do you mean that Medicare will not pay for any days, or just for the day she actually leaves? If she does not complete a full day at facility, then maybe Medicare refuses to pay for that particular day. I'd check with a social worker at the facility to be sure I understood this right.
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