Wave of Whistleblower Suits Predicted Over Virus Relief Aid

Money meant to save hospitals and health systems from collapse during the coronavirus pandemic is likely to ensnarl some providers in high stakes litigation.

The Department of Justice is already cracking down on small businesses that fraudulently obtained and misused federal loans provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Attorneys say health-care providers are next in line to be scrutinized.

In addition to criminal charges, providers will likely see a wave of civil lawsuits accusing them of either taking a bailout they didn’t need or frivolously spending the money they got. But the government won’t ...