Published January 17, 2025
About This Audit
The Tobacco Settlement Program mandates the Pennsylvania Department of Human Services (DHS) to compensate hospitals like UPMC Lititz for uncompensated care services via the Tobacco Settlement Act. Hospitals can qualify for payments through uncompensated care or extraordinary expense approaches. A review was conducted at UPMC Lititz to verify eligibility for the fiscal year ending June 30, 2023. Initially, 27 extraordinary claims were reported, but only 10 met the criteria for qualification. Errors were found in the reported inpatient and Medicaid days for 2022, requiring adjustments. UPMC Lititz must update its PHC4 database and MA-336 Cost Report to maintain eligibility for the 2025 payment. DHS will use revised reports to determine subsidy eligibility, allowing facilities to choose the method that calculates the highest payment. UPMC Lititz submitted five additional claims for review, and the results will be communicated separately. Compliance ensures accurate fund distribution under the settlement.