It is easy for others to say what you should do, or what they would do, if they were in your position, but they are not his primary care givers, and do not spend enough time with him to be qualified to make those decisions.

You obviously have a high level of respect for your father and a you believe it's in his best interests to be in the community and to live with family. In most cases that is the best option, unless mh professionals tell you otherwise.

Is it possible to move your father to a different outpatient psychiatrist? I think it's important to have someone who will be more responsive to your concerns. You could use that support.