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They are hold room as assisted living for 3 wk. Medicaid has paid assisted living for month and she is not there. She has been in rehab facility for l wk.

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Keep Medicaid constantly informed of her whereabouts, and ask Medicaid what they will pay.
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My Brother in Law just is going through the same. The home accepts his pension and SS for that charge. And Medicare pays for the first month in Rehab. After that I think I start paying his Rehab charges out of his own money. (As POA) And they only hold the AL slot for 30 days which is up for me on this coming Monday. I would think that Medicaid will pay for all for you. But yes, keep them informed of the situation.
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