Published June 23, 2025
About This Audit
The Tobacco Settlement Program report addresses the procedures performed to determine Penn Highlands Dubois’ eligibility for tobacco settlement payments. Under the Tobacco Settlement Act, hospitals may receive payments based on the uncompensated care or extraordinary expense approach. An engagement was conducted to examine claims for fiscal year ending June 30, 2024, revealing that seven out of ten reported claims qualified as extraordinary expense claims. It also assessed the accuracy of reported inpatient and Medical Assistance days for fiscal year ending June 30, 2023. Eligible hospitals can choose between the extraordinary expense and uncompensated care methods for calculating their 2026 payments. Penn Highlands Dubois is advised to adjust claims and data through the PHC4 database and iPACRs system. The outcome for the hospital’s settlement eligibility will be based on verified claims and the revised MA-336 Cost Report. DHS will determine the payment distribution date for all eligible hospitals.