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PA Department of the Auditor General

Published April 17, 2025

About This Audit

The report addresses the procedures and findings related to Good Shepherd Rehabilitation Hospital’s eligibility for the 2026 Tobacco Settlement Payment. The Tobacco Settlement Act requires hospitals to receive compensation for uncompensated care through two methods: the uncompensated care approach and the extraordinary expense approach. The report conducted by the Auditor General finds that Good Shepherd had no eligible extraordinary expense claims for the fiscal year ending June 30, 2024, thereby rendering them ineligible for payment unless additional claims are submitted and qualify. The facility’s submitted inpatient and MA days for June 30, 2023, were verified without discrepancies. Facilities can still submit additional claims until October 31, 2025. The report will aid the Department of Human Services in calculating hospital eligibility for settlement payments. Ultimately, Good Shepherd has no immediate claim under the extraordinary expense method for 2026, but they can submit further claims before the deadline.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General