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PA Department of the Auditor General

Published October 27, 2026

About This Audit

The Tobacco Settlement Program requires the Department of Human Services (DHS) to compensate hospitals for uncompensated care, either through an uncompensated care score or extraordinary expense approach. Penn Highlands Dubois underwent procedures to verify the eligibility of claims for the Tobacco Settlement Payment for 2027. Of 13 reported extraordinary expense claims for the fiscal year ending June 30, 2025, 11 met the criteria under the extraordinary expense approach. For fiscal year 2024 healthcare days, some reporting errors were identified, and adjustments were recommended. DHS will use verified data to assess eligibility, allowing hospitals to select the compensation method for payment if eligible under both approaches. Completion of adjustments on the PHC4 database and MA-336 Cost Report is mandatory, and eligible hospitals must submit additional insurance claims for fiscal 2025 by October 31, 2026. 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