Published September 16, 2026
About This Audit
The Tobacco Settlement Program, established by the Tobacco Settlement Act of 2001, involves the Department of Human Services (DHS) paying hospitals like Mount Nittany Medical Center for uncompensated care services. Payments can be made via the uncompensated care or extraordinary expense approach, the latter requiring claims to exceed double the average inpatient claim cost. For fiscal year ending June 2025, Mount Nittany reported 23 extraordinary expense claims; however, only 9 met the qualifying criteria. Discrepancies were identified in both the claims and inpatient days data initially submitted, necessitating corrections. DHS will use verified data to determine subsidy eligibility, allowing hospitals to choose their preferred calculation method. Adjustments must be submitted by October 31, 2026. The program aims to ensure accurate financial reconciliation for potential Tobacco Settlement subsidy payments by 2027. Any remaining inquiries can be directed to Mount Nittany’s staff. This is an automated summary. Please rely on the contents included in the released audit report.
