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My sister-in-law is being discharged from rehab for lack of pt cooperation (re walking). But a good part of the problem is the still prominent effects of encephalitis. She doesn't remember well and is not always lucid. Shouldn't she be allowed to recover from encephalitis before discharge.

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Cheryl, that is an awesome story about your sister and how you and the family all helped bring her back to walking and how you continue to care for her emotionally and physically! Makes me wish I had a sister for sure! I hope the poster takes your post to heart and is able to help her with her SIL as you have your sister.
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Nursing homes are either "rehab" or "custodial" for insurance purposes. Since she is refusing rehab, she is a custodial patient. Either she goes home, which may not be safe, or she remains in custodial care.
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Go the website "Encephalitis Society." That should assist you with your search for answers.
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How severe is her encephalitis? My sister was still having seizures when they put her in rehab. She was tired from the seizure meds but the initial rehab was the only opportunity for her to learn to walk again. Our family made a schedule to have one of us at the nursing home to be her cheerleader when it was time for her rehab. We would coax her out of bed and get her dressed and jump up and down when she took her first few steps. We rewarded her with foot rubs, cute jogging clothes and promises to bring her home for visits when she could walk. She was walking again with a walker in six weeks. Without a walker in about 10 weeks. As long as she made progress she continued with therapy. After that time walking around our house and being able to go to the movies and out for dinner was therapy enough to keep her walking. Her neurologist initially didn't want her in rehab because resting her brain was paramount. He also said she would never walk again. Waiting for her brain to heal wasn't the way the rehab system worked, unfortunately and instead of paying money for more therapy my sister would refuse, we chose to spend more time making sure she participated in therapy. She has been living with me the last six years and is walking fine. Any time she has a hospital stay I go to the hospital every day and walk with her so she doesn't lose her ability to walk. Good luck to you and your SIL. We are praying for you!
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Please give more details. Is her insurance coverage running out and she maxed out her length of stay? If so then she needs to pay out of pocket. My aunt who had Parkinsons would find every excuse to avoid PT while in rehab and her children wasted money in continuing attempts. It could be that your SIL's encephalitis is chronic, or at least the cause of it which is more likely.
It looks like you need answers on what is the next step
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