One is either in the Nursing Home under Fair Deal or privately, though you can change from one to the other.
If you are in under Fair Deal, what you get is the Fair Deal package and the nursing home gets paid the Fair Deal rate that has been agreed for that home. This covers nursing and personal care, basic aids and appliances, bed, board, laundry. Anything else (In private nursing homes anyway) is extra and is not covered by Fair Deal.
Usually for Fair Deal residents the nursing home also applies a compulsory activity charge which varies from home to home but is typically €50 – €100 weekly, which is not covered by Fair Deal.
Private rates are higher but usually include the activity charge. As you say some nursing homes (Not All) are up to €200 weekly more than the Fair Deal rate (I know of one which is up to €400 weekly more) For the additional payment you get extras or premium packages as they are sometimes referred to and can include some or all of; a larger room, Wi-Fi and Satellite Tv with all channels in your room, scenic view from room, hairdressing, newspapers, toiletries etc.
Fair Deal residents whether they apply for the loan or not do not get the benefit of these private resident extras. They can of course get these extras, but Fair Deal won’t pay for them.