Published October 23, 2025
About This Audit
The Tobacco Settlement Program relates to payments made to hospitals for uncompensated care services, as directed by the Tobacco Settlement Act of 2001. Qualified hospitals, like Wellspan Ephrata Community Hospital, can receive funds either through an uncompensated care approach or an extraordinary expense approach. The latter is applicable for claims exceeding twice the average cost of claims at that facility and involves patients who are uninsured. An engagement assessed the eligibility of Wellspan Ephrata’s claims and inpatient days for fiscal years 2023 and 2024 to determine potential payment qualifications for 2026. Out of 21 claims reported as potentially eligible, seven met the criteria for extraordinary expenses. Facility data verified for total inpatient days and Medical Assistance days showed no variance. Compliance with claims adjustments is crucial for eligibility in the PHC4 database. DHS will guide further processes, including whether additional claims can be submitted. This is an automated summary. Please rely on the contents included in the released audit report.
