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PA Department of the Auditor General

Published June 23, 2025

About This Audit

The Independence Health System Latrobe Hospital underwent a review concerning its potential eligibility for the 2026 Tobacco Settlement payments, which are dictated by the Tobacco Settlement Act of 2001. The focus was on uncompensated care and extraordinary expense claims for the fiscal years ending in 2023 and 2024. A claim initially identified as extraordinary expense was found ineligible after verification, indicating the hospital’s exclusion from such payments unless additional eligible claims are submitted by October 31, 2025. Inpatient and Medical Assistance days data were analyzed, with minor reporting adjustments identified. The hospital must update its records during the self-verification process to maintain database accuracy. This process ensures that eligible hospitals receive due settlement payments or subsidies. The final report will consolidate findings and guide the Department of Human Services in payment distribution decisions under both extraordinary expense and uncompensated care methods. The full report is publicly available.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General