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PA Department of the Auditor General

Published September 9, 2026

About This Audit

The report outlines the procedures undertaken to determine Riddle Memorial Hospital’s eligibility for the 2027 Tobacco Settlement Payment from Pennsylvania’s Department of Human Services (DHS). The Tobacco Settlement Act, amended in 2001, enables hospitals to receive payments for uncompensated care services via two approaches: uncompensated care or extraordinary expenses. Riddle Memorial submitted 18 potentially eligible extraordinary expense claims, and ten met the qualifying criteria. The facility’s inpatient days and Medical Assistance (MA) days for the fiscal year ending June 30, 2024, were substantiated with no discrepancies found. Hospitals failing to adjust disqualified claims in the Pennsylvania Health Care Cost Containment Council (PHC4) database risk becoming ineligible for extraordinary expense payments. DHS will calculate eligibility through verified claims and revised reports, allowing hospitals to choose the most beneficial calculation method. Final eligibility details will be communicated after all engagements across facilities are completed. 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