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PA Department of the Auditor General

Published May 27, 2026

About This Audit

The Tobacco Settlement Act mandates the Department of Human Services (DHS) to compensate hospitals for uncompensated care using two approaches: uncompensated care or extraordinary expense. Foundations Behavioral Health was evaluated for its eligibility under these methods. The engagement found no extraordinary expense claims for the fiscal year ending June 30, 2025, rendering the facility ineligible for the 2027 Tobacco Settlement Payment unless new claims are submitted and deemed suitable. The facility’s inpatient and Medical Assistance (MA) days for the fiscal year ending June 30, 2024, were substantiated accurately against source documents. Facilities can still submit additional claims by October 31, 2026, for consideration. DHS will finalize eligibility based on verified data and allow hospitals to choose their preferred calculation method if eligible under both approaches. 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