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My Mother in Law lived in a care home (meaning a home that someone owns and runs themselves as a licensed care home). She passed away July 14, 2014. She was put in the hospital on July 8th and moved to hospice facility on July 9th. She had paid for the full month of July and the care home refused to give a refund of any amount. My Mother in Law only used basically 7 days of the month of July 2014. How can they keep the full $2,000?

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I'd say it would not be unusual for them to keep the entire month. That should have been clearly spelled out in the papers you or mom signed when she moved in. Read them over or ask for a copy if you can't find them.
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Don;t know much about care homes, but when dad passed in the MC, we got a refund for the balance of the month.
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