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This was 20 years ago. She is still mentally ill. Her name is under his banking with him and she has put him in a nursing home where within 24 hours they found him on the floor with a broken nose and a severe cut on his forehead. She took him to the hospital then home, and now tells us she's going to put him in another home. Note: She is spending all his money fixing up his paid off house, inside & out, and its not for her dad. She talks back to him really ugly when he has a spell.

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In my opinion, no she cannot care for him. I agree, get APS involved. She is spending money that is needed for his care.
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I don't know the OP's connection to the elder here. But an elder with dementia is a vulnerable person. As such, needs a Guardian looking after his interests. The elder could be at serious risk of financial abuse & neglect.

Without further info to go on I think I'd report to APS for investigation.
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