So good news and bad news, eh?
Several years ago my mom was placed in assisted living. Although the way she got there was all wrong, I have to admit that the services that the facility provides have helped her overall.
Having other people around means that she never has to be lonely, and the staff makes sure that the people there do socialize, get enough exercise and have their diets looked after.
My mom's apartment is made up of two rooms, so she has a separate bedroom and living room. There's also a kitchen area with a fridge and microwave, but no stove or oven. All of her stuff is there, and the rooms are decorated per my mom's exacting standards. To be quite honest, I wish that I could move in there and be taken care of like that!
Assisted living is a lot different from the old school nursing home. Although there is some medical staff (mostly CNAs), the assisted living residents are mostly in charge of their own lives, and can come and go as they please. Except of course for those who get lost easily, and those people are still given as much freedom as is safe; they're not locked in their rooms or tied down.
If your mom's insurance covers it, you may want to look into an assisted living facility. The one that my mom is in is operated by her church, which gives me more confidence that they'll treat her right. If you want to contact me offline about what it's like, please feel free to do so. I can show you photos and some video that will give you an idea of how it looks.