SPRINGFIELD - Gov. Rod Blagojevich said Monday he will sign a hospital tax that will be used to pump more federal money into local medical centers.

The governor's decision comes shortly after the Senate moved to re-enact the hospital assessment.

"No matter how tough the state's fiscal challenges are, we have to continue to protect our investments, build on our success and fight to provide healthcare for more working parents and children," Blagojevich said in a prepared statement.

Under the proposal, hospitals pay into a state fund that is used to leverage more money from the federal government.

"This will not only bring in a major infusion of federal recourses for hospitals," said state Sen. Jeffery Schoenberg, R-Aurora. "This will pay for increased dollars to nursing homes, treatment for the developmentally and mentally disabled."

Illinois hospitals will pay out an estimated $730 million a year for three years; $130 million a year will be transferred into a trust fund that will dole out the money to facilities like nursing homes. The other $600 million will be used to capture extra Medicaid funds.

The state estimates that reimbursements will provide an additional $470 million for hospitals annually.

Here is how local hospitals fared:

n Decatur Memorial Hospital will pay out $5.5 million and get $8.4 million in return.

n Hillsboro Area Hospital pays in $243,173 and receives $629,709.

n St. Mary's Hospital in Decatur will pay out more than $2 million and receive $5.2 million.

n St. Vincent Memorial Hospital in Taylorville pays out $495,023 and gets more than $1.2 million.

n St. Vincent Children's Hospital in Taylorville is not taxed and will get $443,971.

The proposal passed 53-6 and now goes to the governor.

Senate Minority Leader Frank Watson, R-Greenville, and state Sen. Dale Righter, R-Mattoon, voted for the measure. State Sen. Bill Brady, R-Bloomington, voted against the proposal.

In the House, all local lawmakers voted for the measure.

Matt Adrian can be reached at matt.adrian@;lee.net or 789-0865.