op, i do believe you, as incredulous as it sounds.
(and that dr. is one stupid man.)
NO- this is not ok at all.
hospice never medicates "until death".
and it is never ok to do so.
seriously, i would file a report against the dr., submit to nm (with cc to DON) and refuse assignment all together.
i'm thinking your risks/legal dept would not be ok with this at all.
get away from this assignment.
if, after submitting your report, orders remain unchanged, then it's time to get away from employer.
do not discuss this with anyone except your superiors.
and worth repeating, put everything in writing (same as what you posted here).
take action immediately if able.
let us know how it all pans out.