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PA Department of the Auditor General

Published September 16, 2026

About This Audit

The report details the procedures and results for Penn State Health Lancaster Medical Center’s eligibility for the 2027 Tobacco Settlement Payment. The Tobacco Settlement Act mandates payments to hospitals for uncompensated care, with eligibility determined either by an uncompensated care score or extraordinary expense approach. The facility reported two potentially eligible extraordinary expense claims for fiscal year 2025, both verified as qualifying under the extraordinary expense criteria. The report also confirms slight discrepancies in total inpatient days reported for fiscal year 2024 but notes no significant issues impacting eligibility. DHS will use these verified details to determine the facility’s subsidy entitlement. PHC4 will contact the facility about adjusting claims, and any additional claims must be submitted by October 31, 2026. Completion of these procedures will aid in calculating the facility’s potential payment method, either through the extraordinary expense or uncompensated care approach, for the 2027 settlement payment. This is an automated summary. Please rely on the contents included in the released audit report.

Audit Type:

Audit County:

Pennsylvania Department
of the Auditor General