I was watching Carousel last night - the one with Margaret Michaels as Pam (which they confirm in the credits so there's no doubt).
I think it's pretty obvious that we're supposed to take this as the final word. She's got some dread terminal illness and we won't be seeing her again. Of course the reckoned without us obsessive fans who wouldn't believe it unless we saw a body - and maybe not even then.
More importantly, as I was watching it occurred to me that they should have done this scene two years earlier but as a flashback with Bobby talking to his doctor as an explanation for his yearlong absence. He came to after the family left the room, but thought he was dying and didn't want the family to have to watch. Then he got better. Simple.