Wow, what a miracle, reading thru this made me smile a lot (albeit late). I'll pray Katie's recovery continues like this!
Don't be afraid to contact your local State Senator for help in unraveling the Medicaid red tape. My wife does this kind of constituent work all the time - this is what your elected officials should be doing for you. She can go right to the director for our area, versus dealing with some lower level positions. It wouldn't hurt to drop a line to your local paper for a story. Every politician loves some publicity and help may come from other areas too. Keep us posted!