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I am very sorry to learn about this situation with your friend. Do you have a specific legal question or issue related to this matter that I can assist you with today?
Again, I am very sorry to learn of this situation. Unfortunately, this is a very difficult matter to deal with.
What you can consider is trying to file what is called a "Conservatorship Petition" to try to show that he is no longer capable of making decisions to care for himself (you would have to show that he is unable to understand the consequences of his behavior) - he is entitled to a trial on the issue, and legal representation.
The facility's definition (or interpretation) of "competent" and a courts may differ.
You are welcome, and I do wish you the best with this matter.
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Thank you again, and again I wish you the best.