Published April 10, 2025
About This Audit
The Tobacco Settlement Act mandates the Department of Human Services (DHS) to compensate hospitals for uncompensated care services. The Encompass Health Rehabilitation Hospital of Reading was evaluated to determine its eligibility for such payments for the fiscal year ending June 30, 2024. This evaluation focused on whether the hospital had any qualifying claims as extraordinary expenses and if the facility’s reported data on inpatient and Medical Assistance days was accurate. No eligible extraordinary expense claims were identified, making the facility ineligible for payment under this method unless additional claims are approved. DHS will use verified data to determine hospitals’ entitlement to Tobacco Settlement subsidy payments and allows eligible hospitals to choose between two methods for calculating their entitlements. The Encompass Health was reminded to submit any additional claims by October 31, 2025. The report distribution includes several relevant officials, and it is publicly accessible online.