The most common and most likely answer to this crossword clue is the 7 letter word HOSPICE
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Buddy explains!
The straight part
We know that "home for the terminally ill" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case home for the terminally ill = hospice.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does HOSPICE mean?
HOSPICE noun- A lodging for pilgrims or the destitute, normally provided by a monastic order.
- The provision of palliative care for terminally ill patients, either at a specialized facility or at a residence, and support for the family, typically refraining from taking extraordinary measures to prolong life.
- A specialized facility or organization offering palliative care for the terminally ill.