Mid-Atlantic Health Law TOPICS
Did You Know? Summer 2025
NLRB Rescinded Guidance: Did you know that National Labor Relations Board (NLRB) acting General Counsel William B. Cowen rescinded at least 18 memoranda issued by his predecessor, effectively rolling back former General Counsel Abruzzo’s policy agenda? The rescissions include memoranda regarding remedies for unfair labor practice, rights of college athletes under the National Labor Relations Act, restrictive covenants, “stay or pay” provisions, and union recognition. The previously aggressive approach of former General Counsel Abruzzo on restrictive covenants and “stay or pay” provisions in these memoranda signaled a pro-employee agenda for NLRB. Now, with the rescission of the memoranda, there may be a shift towards less protection for employees and restrictive covenants may be more palatable than under the prior administration.
IRS Sued Over Denied ERC Claim: Did you know North Sunflower Medical Center, a rural Mississippi hospital, that was denied pandemic relief credits for three quarters of 2021 sued in federal district court to challenge an IRS determination that it was disqualified from receiving an $8.6 million employee retention credit (ERC)? The ERC is a tax credit program that reimburses businesses for keeping employees paid during the pandemic. The IRS claims the hospital failed to prove that it had the capacity, equipment and access to personal protective equipment needed for the tax break. North Sunflower Medical Center argues that it is entitled to the ERC because it was just following State orders that impacted its ability to service patients.
Surprise Billing Controversy: Did you know an estimated 50 clinician practices sued more than 20 insurers in New Jersey District Court earlier this year for unfair decisions made by a company that oversees surprise medical billing disputes? However, the company in question is not named as a defendant in the lawsuit. The group of clinicians argues that arbitrator ProPeer Resources, LLC, is automatically ruling in favor of insurers and violating the No Surprises Act (NSA) by “refusing to hear evidence pertinent and material to the controversy” during the arbitration process.
Kennedy M. Hagens
410-576-4146 • khagens@gfrlaw.com