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PA Department of the Auditor General

Published April 17, 2025

About This Audit

The Tobacco Settlement Program mandates that the Department of Human Services (DHS) provides payments to hospitals like Encompass Health Rehabilitation Hospital of Altoona for uncompensated care services. Hospitals can qualify under either an uncompensated care or an extraordinary expense approach. For the 2024 fiscal year analysis, Encompass Health Altoona did not have eligible claims under the extraordinary expense method for the 2026 payment year. The evaluation confirmed the accuracy of reported inpatient and Medicaid Assistance days. Facilities can submit additional claims if they meet specific criteria by October 31, 2025. DHS will use verified data to determine eligibility, allowing facilities to choose the best method for subsidy calculations. Adjustments and submissions should be managed through respective databases and systems. DHS will determine distribution dates for payments to eligible hospitals. The report, a public record, can be accessed on the Pennsylvania Auditor General’s website.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General