Medicaid does pay for in-home care, but not generally 24 hours. At that point it is more cost-effective for them to pay for a care center. Is your friend on Medicaid? If so, the case manager can explain options to your friend, and you can be present.
Yes, Medicade will pay for home health. You might want to check Assisted Living, it's not a nursing home, but has staff that will help your friend with daily needs.