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Long-term care facilities across Illinois could face huge losses...or gains.

A possible new tax on nursing homes would help cover the costs of Medicaid residents, but it also means that private-pay patients could end up paying more.

Grace Hampel does not regret her decision to move into the assisted living part of Good Samaritan Home, "I came here and I'm really really glad I did. Everybody treats me wonderful." If the tax is approved, her home may soon see a quarter million dollar budget loss.

Michael Duffy, the administrator of Good Samaritan Home said,"For Good Samaritan Home, over a year's time that's $449,000 worth of tax that we will have to pay to the state of Illinois, for public aid."

The "bed tax" works by charging nursing homes $6.07 per day for each resident who pays for their room privately.

"Nobody likes the word tax. What they're doing is charging more, taking a piece of what they're charging long term care facilities, and using that as match to get better reimbursement rates for Medicaid," said Todd Shackelford with the West Central Illinois Area Agency on Aging. Duffy sees it differently,"The law specifically states that we cannot put it onto a resident's bill...but the money has to come from somewhere."

For many area facilities this tax would generate more money to cover expenses for Medicaid patients.

Shackelford explained, "The idea is to have better reimbursement rates to facilities for Medicaid patients so they can, for instance, increase staffing levels, provide facility improvements, and just enhance the environment and the care for those seniors."

Other nursing homes would be paying much more than they receive back. The losers seem to be non-profit facilities.

"We pride ourselves on the way we staff. We pride ourselves on the quality of care we give our residents. So it will have to come from other things as 'How do we operate more effectively, more efficiently? How can we reduce some of our expenses? The last ditch would have to be adjusting hours and staffing. That would be the last thing I would ever want to look at, " said Duffy.

Currently, facilities bring in more money from private pay residents than from Medicaid.

The bed tax has been approved in Illinois, but still needs federal approval.