This happened to us with a quilt for my dad - His nursing home was quite helpful in that we looked in the laundry and then peered into the other patients rooms - we finally tracked it down - someone else had taken the label off and then used permanent marker to write their name on it lol Luckily he had been there long enough that the aids knew it was his quilt and was able to get it back - good luck and prayers for Granny coming your way
I realize that the quilt is special especially now that she is getting sicker - If you dont have time for another one make her a couple of nice pillow cases - just a suggestion