There is something else going on here that we don't know about.
Given today's job/employment market, for a person to have no luck finding a job after 7-8 months of looking doesn't make sense, particularly in the healthcare industry.
Another thing that doesn't make sense is the prospective employer's having her make a verbal commitment to stay 5 years. I didn't hear anything about them making the same commitment to her. Personally, I would NEVER make that kind of a promise to a prospective employer.
IMO she should keep looking. She should just respectfully decline their offer because it doesn't make economic sense, and that is what she should tell them. This won't look bad on her job record because she did not actually work there.