How to deal with mother, permanently in nursing home who wants to go home?

Is 86. Has a history of Schizophrenia. 4 yrs ago got off her meds, went into Psych hospitals for over 3 months. Came out of it like new. Went home, lived and cared for herself. Even drove locally. This latest episode began w/ the typical Urinary Tract Infection and is going on for 4 months (3 mos. in Awful Psych facility and 1 mos in the nursing home). She was diagnosed w/ "moderate to severe" dementia. During this time, she has gone from hallucinations (talking to herself, dead persons, etc) along w/ delusions (Adult children and grandchildren living different places, old relatives moving to other countries, etc.).

The hallucinations have ended. There are still some delusions, but not as severe. She is unable to live w/ any relatives. Her children have made the decision for permanent nursing home. We are about to apply for Medicaid. They take good care of her in NH, but she is much more highly functional than the others in home. Thinks she is in w/ all of the depressing, old people, and she is correct. Since she is a flight risk, she cannot go to a nicer area of the nursing home. She has recently asked "when she is going home"? The nursing home staff says to tell her, "we are working on it", just keep getting better". I (one of her children) feel terrible about this. How should I handle this?