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PA Department of the Auditor General

Published November 20, 2025

About This Audit

The Pennsylvania Department of Human Services (DHS) is tasked with allocating funds from the Tobacco Settlement Act to hospitals for uncompensated care services. Hospitals can qualify through either an uncompensated care approach, using a care score based on five key data elements over three years, or an extraordinary expense approach, determining claims exceeding twice the average cost. Reading Hospital submitted 56 potentially eligible extraordinary claims for the fiscal year ending June 30, 2024; 38 were deemed eligible. The hospital can now qualify for payments under the extraordinary expense method for 2026. The facility must adjust claims listed as extraordinary expense claims during the self-verification process to ensure eligibility for Tobacco Settlement payments. 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