Diane -
You didn't say whether your dad is a veteran of one of the U.S. armed services or not, but at age 87 that would mean he was a young man around the time of World War 2, so I'm going to assume that he likely was in the military at some point during that era.
If that is the case, then, yes, there are government assistance programs available through the Veterans' Administration that he could well be eligible for. Not just "hospice" programs but "palliative" (terminal condition not required) programs as well.
So if he ever did serve in one of the U.S. military branches and was honorably discharged following service, then he is likely eligible for those programs.
For more information, take a look at:
www.va.gov/GERIATRICS/guide/longtermcare/Hospice_and_Palliative_Care.asp#