Shodair Children’s Hospital Receives $2.3 Million in COVID Employee Retention Credits After Two-Year Wait

HELENA — After nearly two years of waiting, Shodair Children’s Hospital, Montana’s only pediatric mental health facility, has received a $2.3 million check from the Internal Revenue Service through Employee Retention Credits, pandemic relief funds designed to support organizations that retained employees during COVID-19 disruptions.

The hospital applied for the credits in late 2023, seeking reimbursement for the first quarter of 2021 when the facility faced significant operational challenges at the height of the pandemic. Like many healthcare organizations, Shodair dealt with disrupted bed availability and staffing shortages during the pandemic. Rather than resort to layoffs, hospital leadership made the notable decision to take temporary pay cuts themselves to retain their workforce.

The lengthy processing time—which can range from two weeks to more than two years depending on IRS approval—was significantly accelerated after Congressman Troy Downing’s office intervened on behalf of the hospital.

“This outcome is a shining example of the impact constituent services can make in our communities,” said Congressman Downing. “Shodair’s mission to provide comprehensive pediatric mental healthcare services is setting the next generation of Montanans up for success, and I’m thrilled that we were able to claw back these funds from the IRS so that they can be redeployed where they’re needed most–Big Sky Country, not Washington.”

It took Downing’s office about 50 days to secure the funds after they had been pending for almost two years.

“We couldn’t be more thankful for the assistance of Congressman Downing’s office,” CEO Craig Aasved said. “His commitment to Shodair’s mission means a great deal to our team, and more so families in need of our services across the state.”

Aasved said the funds will allow Shodair to better serve patients and their families during challenging times for the healthcare industry.

“This is an uncertain time in healthcare, and the industry faces tremendous challenges without clear, tangible solutions on the horizon. We are forced to be creative and pivot, which we continue to do,” he said. “These dollars directly benefit patients and their families, and the least we could do is hold a proper thank you.”

The Employee Retention Credit was created to support organizations whose services and operations were negatively impacted by COVID-19. Congressman Downing recently visited Shodair, spending time with staff, touring the new hospital facility, and participating in activities with some of the hospital’s youngest patients.