Calling them by a different name is the decent thing to do, and it is also practical. Google around about "adult day care," and you will find that it is common for seniors to feel that using such a facility is an insult to their dignity.
The point of creating adult day care centers is to make it possible for informal caregivers (usually family) to keep their jobs and leave the seniors in the care of professionals. Some focus on socialization, while others have rigorous medical care. Some are dedicated specifically to sufferers of Alzheimer's Disease. With all these functions, it is possible to use a different term to express their role in the lives of our eldest citizens.