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PA Department of the Auditor General

Published May 6, 2025

About This Audit

The Tobacco Settlement Act mandates payments to hospitals for uncompensated care services, with two eligibility approaches: uncompensated care or extraordinary expenses. Kidspeace Hospital submitted data verifying its claims and total inpatient days for review. The audit confirmed the accuracy of the reported inpatient days but found no eligible extraordinary expense claims for the 2026 Tobacco Settlement Payment Year. Hospitals must remove ineligible claims during a self-verification process to ensure accuracy in the state’s database and potential subsidy qualification. Kidspeace and similar facilities may submit additional claims by October 31, 2025, if new data suggests eligibility, which will influence their settlement subsidy entitlement.

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Audit County:

Pennsylvania Department
of the Auditor General