Final Tobacco Audit Report 1-12-05

SUMMARY REPORT ONTHE RESULTS OF THE INDIVIDUAL REVIEWSOF88 HOSPITAL FACILITIESRECEIVING EXTRAORDINARY EXPENSEPAYMENTS FROM THEDEPARTMENT OF PUBLIC WELFAREIN JUNE 2003TABLE OF CONTENTSPAGELetter from the Auditor General.................................................................................…...... 1Background ….…………………………………..…………………………………..….. 3Audit Scope, Objective and Methodology………………………………………………… 3Summary of Findings and Recommendations ..…...............................……………...……. 5Exhibit 1 …………...…........................................................................…………….....…. 7Exhibit 2 11Exhibit 3 13Department of Public Welfare’s Response ..…................................................…………… 15Pennsylvania Health Care Cost Containment Council’s Response ………………………. 17Report Distribution ...…........................................................................…………….....…. 19January 12, 2005The Honorable Edward G. RendellGovernorCommonwealth of PennsylvaniaHarrisburg, Pennsylvania 17120Dear Governor Rendell:The Tobacco Settlement Act of 2001 (Act 77) mandated the Department of Public Welfare(DPW) to make payments to hospitals for a portion of uncompensated care services provided bythese facilities. In June of 2003 the Department of Public Welfare calculated payment entitlementsof $14,352,130 for 88 facilities under an approach to funding hospitals for uncompensated carecalled extraordinary expense. The payments ...