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PA Department of the Auditor General

Published June 23, 2025

About This Audit

The Tobacco Settlement Act requires the Department of Human Services (DHS) to compensate hospitals for uncompensated care services. Payments are based on either uncompensated care scores or extraordinary expense claims, the latter requiring most costly claims for uninsured patients. Procedures were developed to evaluate claims and data from Heritage Valley Sewickley to ensure eligibility and accuracy. For the fiscal year ending June 30, 2024, nine extraordinary expense claims were reviewed, and six met the criteria, making the facility potentially eligible for the 2026 Tobacco Settlement Payment. Inpatient and MA days reported by the facility were also verified. Accurate database adjustments are necessary to maintain eligibility. DHS will calculate and distribute payments, and the facility may update claims before the October 31, 2025 deadline. Heritage Valley’s cooperation was appreciated, and the report is publicly available, with questions directed to the Auditor General’s office.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General