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PA Department of the Auditor General

Published October 23, 2025

About This Audit

The letter to Mr. David Lim, CFO of Lower Bucks Hospital, outlines the procedures performed to evaluate the hospital’s eligibility for the 2026 Tobacco Settlement Payment. This payment is based on the Tobacco Settlement Act, which compensates hospitals for uncompensated care services. The eligibility can be determined by either the uncompensated care approach or the extraordinary expense approach. The report found that eight of the hospital’s nine submitted extraordinary expense claims met the qualifying criteria. Additionally, of the inpatient and total Medical Assistance days reported for the fiscal year ending June 2023, some discrepancies were identified and reported. The report stresses the importance of updating records in the PHC4 database to ensure payment eligibility. The Tobacco Settlement subsidy entitlement will be assessed once all engagements are completed, and eligible facilities may choose the method to calculate their payment. The report highlights the necessity for prompt submission of qualifying claims by October 31, 2025. 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