Govt medicare and property relinquish obligations

[Diron Binns]

Hello. Hope all is well BP members, I have a grandmother who owes a home and has ran out of saving. She is in a nursing home and medicare is covering the cost minus her monthly govt income of about 1k which we pay to the nursing home. She is in the state of PA. Im inquiring what are the obligations that she need to follow in regard to her home? We are presently renting for 900 a month and the home is free and clear minus yearly insurance of 1600 a year and taxes which she gets back at the end of the year. I want to buy the home but my parents aren't sure if when sold, do we have to turn over the assets to the govt (medicare) or can we keep the money from the sale of the home. 

im thinking, if we have to turn over the home, I can create an LLC and buy for say, 20K and rent out since the govt is going the money anyway or should we hold out and sell for the estimated value of about 70K and keep the funds in a account for my grandmother?