What are the steps taken when a parent dies in a nursing home?

Start a conversation with the NH social worker. He/she should be able to guide you. Medicaid typically pays for limited funeral related costs. You may find more online by doing a search for "medicaid funeral services and the name of your state".
You are right to want to be prepared. Keep askng questions.

My uncle, my dad’s brother who was single with no children felt the simplest thing to do was to donate his body to science. He suffered terribly with cancer due to being a life long smoker. He was pleased to know that his body would be used to aid in helping others who were suffering with cancer.

I would speak to the NH to see what options may be available in your area. Take care.

Losing a parent is difficult and adding another stress is not good for you. Here is some information that should help you.
1.     Talk with the social worker at the NH as they should be able to assist/guide to resources.
2.     Call Medicaid to ask if your mother can put away any funds for final arrangements.
3.     Here’s link to site with helpful information:  https://www.needhelppayingbills.comhtml/help_with_funeral_costs.html
4.     If your mom was on SS, check with them.
5.     If the estate, closest living relative and other next of kin relatives lack the funds to pay for a funeral, the person handling the death can sign a release form at the coroner's office. The form is a declaration that you are unable to afford to bury or cremate the family member. Once signed, it releases the body to the corner to handle the remains. If your family wishes to receive the ashes, a fee may be charged for their return. 
6.     https://www.funeralwise.com/2018/01/22/how-to-pay-for-a-funeral-when-there-isnt-any-money

I imagine you aren't the first family at this nursing home that has had this dilemma, ask the social worker what others have done. I found an article on line you may find helpful:

http://www.us-funerals.com/funeral-articles/indigent-burials-and-cremations.html

Hi Hangingon,

Is your mom still on hospice or did they remove her from that program? If someone passes away while on hospice, I believe you call the hospice nurse. (I believe that's who we called; it might have been a different number but it was in the hospice folder they gave us.) They send someone to the nursing home to confirm that the person is passed and they transport them. At least that is what ours did. Otherwise the nursing home should be able to tell you what to do. If you are not with your mom when she passes, I believe the nursing home would contact you and most likely contact the coroner's office but definitely just ask them. They will understand that you are concerned about it.

I would start by talking to the NH social worker, and if your mom is still on hospice, phone their contact person as well. I don't know if this would apply in your mom's case, but Illinois is supposed to have a program through DHS that will help pay for the cost of cremation and/or burial. I will message you the link. But the social worker might be able to help you with more information.

I hope you are doing ok and that your mom isn't in pain. Hugs to you.

Hanging, have you talked to the SW at the NH about this issue?

Go talk to the NH's social worker. They'll help you.

Have you considered donating her body for science? Contact any major university that is close to you and ask if they have this type of program. Once they are done with the body, they pay for cremation and return the cremated remains to the family. All of this is done at no cost.

When my mom died in her NH she was on hospice and pronounced dead by the NH doctor.

We had our mother’s funeral prepaid and they were called by the NH staff. My mom died at 3am, she was taken to the funeral home by 6am.

Hospice doesn’t transport people here.

I imagine you are stressed knowing all this. Funerals are expensive. I hope you get resources to work with you to solve this. I too would speak to the NH SW.

I sincerely hope you can resolve this so you can spend time with your mom during her last days on earth. You have been such a good son to her.

I would speak to the nursing home's social worker. I think there may be a small allowance from Medicaid or Medicare for funeral expenses depending on the state you are in. The social worker should be able to guide you in this, which funeral home to use, and how this process will work. Is your mom on hospice? The hospice staff may also know something about how the process will work. I wish you well.