He has POA as well as health POA and she has been diagnosed with Dementia she hallucinates and has started carrying a doll around saying it is a real baby. He has tried to reason with her but she becomes very combative and that is why she cannot live with us as I am physically disabled.
If she cannot self-pay, file for Medicaid.
And, your husband needs to understand that you cannot reason with someone who has dementia. The doll is a real baby to her. This is a common delusion for women. He should never, ever try to take it from her or hide it from her. He may need to speak with her doctor and find out about how people with dementia act.