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IRS offers $2.895 million settlement with Maple Lawn over COVID-19 funding

COLDWATER, MI — County owned Maple Lawn Medical Care Facility received written confirmation Tuesday, July 22 of a settlement offer of $2.895 million from the IRS of an appeal of COVID-19 grants owed from the Employee Retention Credit program. Director Jayne Sabaitis told her board July 16 if confirmed, she would accept the offer after appealing denial of the original $3.6 million request filed three years ago during the pandemic. The money will help Maple Lawn make up for its current $1.3 million operating deficit caused by reduction in Medicaid funding for the current federal fiscal year. Prior story Maple Lawn to appeal IRS denial of $3.6 million in COVID-19 relief funds Sabaitis told her board she would consult with accountants Plante-Moran. 'We'll be discussing how that's going to affect our cost report. We want to make sure that we keep our expenses so that our Medicaid rate stays the same to make sure the use of the funds would not hurt next year's Medicaid funding," she said. Sabaitis told the board there are some capital projects which were delayed. 'We're not going to take this money and blow it. We want to hold cash as much as we can' with questions about future funding, she said. Related story With a current $1.2 million loss, Maple Lawn faces concerns with federal Medicaid cuts Sabaitis said five other Michigan nursing homes hired Washington legal counsel to sue the IRS over ERC denial. Maple Lawn was a late applicant for ERC funding only learning near the end of the pandemic the non-profit nursing facilities were eligible. The program was created for eligible businesses and tax-exempt organizations that had employees and saw increased costs or losses affected during the COVID-19 pandemic. Subscribe Support local to the Coldwater Reporter Maple Lawn is licensed for 114 beds but fluctuates by staffing. The nursing care and rehabilitation regularly reports over 90% occupancy. Contact Don Reid: dReid@ This article originally appeared on Coldwater Daily Reporter: Maple Lawn to receive $2.895 million ERC program settlement from IRS Solve the daily Crossword