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PA Department of the Auditor General

Published April 8, 2026

About This Audit

Encompass Health Rehabilitation Hospital of Mechanicsburg was evaluated for eligibility under the Tobacco Settlement Act’s payment program. The program aids hospitals by compensating for uncompensated care services. Two approaches are identified: uncompensated care and extraordinary expense approaches, the latter relies on claim costs surpassing a specified threshold for uninsured patients. The hospital was not eligible for the 2027 Tobacco Settlement Payment under the extraordinary expense method due to the absence of qualifying claims for 2025. However, they can submit additional eligible claims by October 31, 2026, potentially altering this status. The procedures also verified inpatient days data, revealing minor reporting errors. This is an automated summary. Please rely on the contents included in the released audit report.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General