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Dale,
    I'm not a caregiver (except to my old dog) but I have comments anyway.
Hope you don't mind. This sounds like it would be an awfully expensive
proposition if made available universally to all who would want such
facilities.  You mentioned it would be provided free to all who didn't have
insurance to pay for it.  Who would provide it free, the medical facilities
who are going to also donate space? Or are you just posing a demonstration
project and I'm jumping the gun with these questions?
    There is a sprawling, privately owned, senior housing/nursing home and
everything-in-between place a few miles from me - real vertical integration.
They just bought a large old Victorian house on the periphery (?) of their
complex and rebuilt it into a senior day care center.  It looks real nice
and was built all to code, licensed, etc.  Housing these in medical
facilities, hospitals, with medical exams, etc, sounds too expensive to
work.
    Having said that now, I do recall the last time I was at the East Orange
VA Hospital.  It is merging with the one in Lyons, NJ, because of under-use
(although neither is going to be closed, of course).  The population of
W.W.II Vets in northern NJ, for whom these hospitals were built, is rapidly
decreasing, leaving lots of unused space.  And there are thousands of these
hospitals all around the country.  Some possibilities there?