What happens when the money runs out?

My father has Lewy Bodies Dementia. My mother has been caring for him but lately, he has begun to fall (3x this week) and his hallucinations, delusions, hostility and agitation are making him very difficult to care for. They live in California where memory care runs $7,000 per month. We do have an eldercare attorney and thier home has been put in trust to me and will be moving money for my mother's future care into the trust also. The remainder will be gone in about a year.

My question is, can the care home put my dad out when he has to go on Medicare? I can't get a straight answer from anyone on this and I have been warned that the state care homes are horrible. He is a vet and on the waiting list for a home with the VA, but they tell us there won't be a spot open for 1.5 to 2 years. I doubt we can make it that long. My parents applied as a couple which the VA rep said gets you in faster but when they heard that my father had dementia he said, "Oh, that's a real red flag for us." I could almost hear the application being moved to the bottom of the pile.