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PA Department of the Auditor General

Published September 16, 2026

About This Audit

The Tobacco Settlement Act mandates Pennsylvania’s Department of Human Services to compensate hospitals for a portion of uncompensated care services. Lancaster General Hospital’s eligibility for these payments was assessed using data on uncompensated care costs, patient revenues, and more. Two approaches are used for determining qualification: uncompensated care and extraordinary expense methods. The review for the fiscal year ending June 30, 2025, verified claims that met specific criteria, such as being for uninsured patients with costs double the average inpatient claim cost. Out of 95 potentially eligible claims, 41 were verified to qualify as extraordinary claims. These qualifications could make Lancaster General Hospital eligible for the 2027 Tobacco Settlement Payment. This assessment highlights adjustments needed in claims reporting, such as removing non-qualifying claims from listings of self-pay claims. 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