I think this is quite common in nursing homes. My gran had constantly gone on about the babies she'd lost(She had no recollection of my two aunts or my dad being born but could remember the two babies she'd had that were still born). She was distressed and tearful a lot of the time and accusing people of stealing her babies because they didn't move. The nursing home gave her a doll and she used to sit and cradle it for hours, including changing nappies. Simple solution but one that worked with dementia.