As a Buyer of a SNF with Medicaid residents in Illinois, you should be careful to ensure your Seller puts funds aside to pay the bed tax when it becomes due. Although the regulations are clear that the payment is the responsibility of the seller, if the seller does not make the payment, HFS will deduct this amount from the buyer’s Medicaid check. The amount of the tax is based on $6.07 per day multiplied by the actual census in house (as slightly adjusted) for the month two months prior to the date on which the tax is being imposed. The tax is typically due only after HFS pays the licensee for services rendered in such month. For example, if HFS paid for December services, the tax will be due for the month of December based on September census figures. A Seller may argue that they shouldn’t be required to put funds aside for a payment that isn’t yet due and for a month in which it hasn’t yet been paid. Without the funds put aside, however, a buyer may find itself suing an entity without assets for six or seven months of bed taxes.