Aside from wondering if the entire story is a hoax, I did notice that the hospital and hospice are in the same family. And, if the hospital and hospice were told that granny was going to be taken off feeding, then according to the law, she was terminal. That's how it worked for Terri too. Scheduled natural death by starvation is adequate grounds for hospice admission. The mistake, as you pointed out, would have been to take a general POA as a medical one.
I can't figure out the reference to Florida either. Isn't this story set in Georgia?
I think that's just typical WND crappy reporting. I assume they meant Georgia, but if they can't get that simple fact right, which ones do we take as gospel?