Hospital’s $11.5 Million Covid Credit Lawsuit Beats Dismissal

A nonprofit hospital’s lawsuit seeking an $11.5 million refund under a Covid-19 relief program may continue, a federal district court judge said, denying the government’s motion to dismiss.

Tri-State Memorial Hospital’s has sufficiently alleged that it is eligible for employee retention credits it claimed for three quarters of its 2021 tax year, the US District Court for the Eastern District of Washington held Thursday.

Congress in 2020 created the employee retention credit program to help businesses hold on to their workers during the pandemic. The law creating the program requires that taxpayers seeking to claim the credit prove they were ...