The Intelligencer reported that the Bucks County Commissioners accepted Dolan's resignation Wednesday night.
Dolan's resignation comes amid controversy.
A grand jury report released last month revealed the department had poor oversight over county health plans, the Bucks County Courier Times reported. The 76-page grand jury report revealed errors by staff caused the county to spend $450,000 more than necessary to provide benefits.
Dolan, who worked for the department since 1994, was suspended without pay just days after the release of the report.
The investigation began last year after an audit showed numerous dependents listed on Bucks County health plans were actually ineligible to receive benefits, the Philadelphia Inquirer reported.