Butler Memorial Hospital will receive $1.6 million in reimbursement of tobacco settlement funds according to an audit released Wednesday, May 31, by the state.

Pennsylvania Auditor General Timothy L. DeFoor announced the audits for 17 health care facilities across the Commonwealth, including Butler Memorial, which merged with Excela Health earlier this year to create the Independence Health System.

“Pennsylvania utilizes a rigorous auditing process to ensure that funds are being disbursed in accordance with the applicable policies and regulations,” said Tom Albanesi, CFO of the Independence Health System, in an official statement. “All five Independence Health System hospitals cooperate fully with the Pa. Department of Auditor General in conducting those audits. These audits are routine and ongoing.”

The amount is for claims filed during the fiscal year which ended in June 30, 2021, and would be paid in the 2023 Tobacco Settlement Payment Year.

As part of the Master Settlement Agreement with the major tobacco manufacturers in 1998, the state of Pennsylvania received $11 billion to be portioned out between 2000 and 2025.

In the summer of 2001, the Tobacco Settlement Act authorized the state’s Department of Human Services to allocate moneys from the agreement to provide funding for hospitals serving low-income or uninsured patients.