Duties of receiver

  1. Law
  2. Arkansas Code
  3. Public Health and Welfare
  4. Health and Safety
  5. Long-Term Care Facilities and Services
  6. Arkansas Long-Term Care Facility Receivership Law
  7. Duties of receiver

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The receiver appointed pursuant to this subchapter:

  1. (1) Shall operate the facility in such a manner as to assure safety and adequate health care for the residents;

  2. (2) Shall receive and expend in a reasonable and prudent manner the revenues of the facility;

  3. (3) May hire, direct, manage, and discharge any employees, including the administrator of the facility;

  4. (4) Shall be entitled to and shall take possession of all property or assets of residents which are in the possession of the licensee or operator of the facility. The receiver shall preserve all property, assets, and records of residents of which the receiver takes possession;

  5. (5)

    1. (A) May contract for such outside services as may be needed for the operation of the facility.

    2. (B) Any contract for outside services in excess of three thousand dollars ($3,000) shall be approved by the court;

  6. (6) Shall pay commercial creditors of the facility determined by the receiver to be valid;

  7. (7)

    1. (A) May do all things necessary and proper to maintain and operate the facility in accordance with sound fiscal policies.

    2. (B) The receiver shall take such action as is reasonably necessary to protect or conserve the assets or property of which the receiver takes possession and may use such assets or property only in the performance of the powers and duties set out in this section;

  8. (8) Shall conduct the day-to-day business operations of the facility;

  9. (9)

    1. (A) Shall correct or eliminate any deficiency in the structure or furnishings of the facility which endangers the safety or health of residents while they remain in the facility, provided the total cost of correction does not exceed three thousand dollars ($3,000).

    2. (B) The circuit court may order expenditures for this purpose in excess of three thousand dollars ($3,000) upon application from the receiver, after notice to the owner and hearing;

  10. (10) Shall collect incoming payments from all sources and apply them to the costs incurred in the performance of his or her functions as receiver, including the compensation of the receiver;

  11. (11) Shall honor existing leases, mortgages, chattel mortgages, and security interests determined by the receiver to be valid;

  12. (12) Shall remedy violations of federal and state rules and regulations governing the operation of the facility;

  13. (13) May close the facility or negotiate with the owners for the sale of the facility upon approval of the court;

  14. (14) Shall give each resident of the facility and the family representative of each resident notice of the receivership;

  15. (15)

    1. (A) May hire consultants or undertake any studies of the facility he or she deems appropriate.

    2. (B) Any expenditure under this subdivision (15) in excess of three thousand dollars ($3,000) shall be approved by the court.

    3. (C) “Consultants” excludes the owner, licensee, administrator, persons affiliated with the facility, persons with a financial interest in the facility, and persons who have owned or operated a facility that has been ordered into receivership unless approved by the court; and

  16. (16) Shall file reports concerning the receivership and expenditures with the court in such frequency as the court deems appropriate and shall forward a copy of each report to the owner and administrator or licensee of the facility.


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