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PA Department of the Auditor General

Published October 5, 2026

About This Audit

The Tobacco Settlement Act, enacted in June 2001, mandates the Department of Human Services (DHS) to make payments to hospitals, such as UPMC East, for uncompensated care services. These payments can be received through two approaches: an uncompensated care or an extraordinary expense method. UPMC East was evaluated to determine its eligibility for these payments for the fiscal year ended June 30, 2025. For reported claims, three out of six claims met the criteria for extraordinary expenses. The facility’s submitted data for total inpatient and Medical Assistance (MA) days were mostly accurate, with minor discrepancies noted. UPMC East is reminded to correct non-qualifying claims from their PHC4 self-pay claims listing during the self-verification process to ensure eligibility for the subsidy entitlement. Facilities have until October 31, 2026, to submit additional qualifying claims. The outcomes will determine subsidy distribution in the 2027 Tobacco Settlement Payment Year. 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