Should I permit my mom to have her bathroom renovated (paid by Medicaid) when she may need to go to the nursing home shortly?

My mom is in denial that she will ever need to go to a nursing home. Her caseworker calls and wants to talk to her she tells her caseworker that she wants her bathroom renovated. The house has one small bathroom with an old clawfoot tub, no shower. Medicaid approved her for a bathroom renovation, they want to take out her tub and install a walk-in shower.

Her homecare is pushing for it because it currently takes 2 people to safely get her in and out of her tub and they said they can't bill Medicaid for the 2nd person, she is only allowed one caregiver at a time. In fact, they require that I leave the house when they show up, her caseworker told me if I'm there, then the home care agency can't get paid.

My question is, with my mom's Alzheimer's/dementia can she authorize the work be done? She gets confused about what time it is and what day it is, she can't keep appointments straight, she gets he medication mixed up. This morning she would have taken a whole bottle of pills if I wouldn't have been there. She said she heard her doctor say to take the whole bottle! Yes, but only one in the morning and one in the evening until the bottle is empty. She tells people she was born in this house, which is kind of amazing since the house was built AFTER she was born. Then when I ask her what something in the kitchen was used for, she says "I don't know, it was here when I moved in".

I do have POA and my mom signed over the deed to me back in 2008 then retained the house in a life estate for herself for whatever that's worth. Also I would have to let the workers in as my mom couldn't get out of her chair by herself to open the door.