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PA Department of the Auditor General

Published June 6, 2025

About This Audit

The Tobacco Settlement Act requires the Department of Human Services (DHS) to compensate hospitals for uncompensated care. Payments are determined through uncompensated care and extraordinary expense approaches. Procedures were developed to verify claims at facilities like Mercy Fitzgerald Hospital. The hospital reported no eligible extraordinary expense claims for 2024, making it ineligible for the 2026 payment unless additional claims are submitted and approved. Data accuracy for inpatient and MA days was confirmed, except for some minor reporting errors. Facilities must remove ineligible claims from self-verification listings to avoid ineligibility. Revised reports will aid DHS in subsidy calculations. Additional claims must be submitted by October 31, 2025. The audit report is public and accessible online.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General