CHAPTER 8. RECEIVERSHIP
IC 16-28-8
Chapter 8. Receivership
IC 16-28-8-0.5
Cost of receivership
Sec. 0.5. As used in this chapter, "cost of receivership" may
include the costs of placing a receiver in a health facility and all
reasonable expenditures and attorney's fees incurred by the receiver
to operate the health facility while the health facility is in
receivership.
As added by P.L.29-2002, SEC.2.
IC 16-28-8-1
Petitions for receivership
Sec. 1. The director may, after consultation with the commissioner
and the chairman of the council, request the attorney general to
petition the circuit or superior court of the county in which a health
facility is located to place the facility in receivership to protect the
patients in the facility.
As added by P.L.2-1993, SEC.11.
IC 16-28-8-2
Conditions for receivership
Sec. 2. The court may order a health facility placed in receivership
in the following circumstances:
(1) The facility is operating without a license.
(2) The license of the facility has expired or been revoked.
(3) The facility is closing or plans to close and adequate
arrangements have not been made for the orderly transfer of
patients at least thirty (30) days before closing.
(4) The facility is operating under extraordinary conditions that
present a major threat to the health, safety, security, rights, or
welfare of a facility's patients, including imminent abandonment
of the facility by the owner.
As added by P.L.2-1993, SEC.11.
IC 16-28-8-3
Repealed
(Repealed by P.L.179-1993, SEC.15.)
IC 16-28-8-4
Receivers; qualifications; powers and duties
Sec. 4. A receiver:
(1) must be licensed under IC 25-19-1 and may be a state
employee;
(2) must possess the education and experience necessary, as
determined by the director, to oversee correction of the
deficiencies of the facility;
(3) must not have been found guilty of misconduct by any
licensing board or professional society in the state;
(4) must not have (or a member of the receiver's immediate
family must not have) a financial ownership interest in the
facility;
(5) has the powers and duties granted by the court to protect the
interests of the patients in the health facility, which may include
providing for the orderly relocation of patients from the health
facility and the refusal to admit new patients pending closure;
and
(6) must report to the director on the operation of the facility
and the status and condition of the patients.
As added by P.L.2-1993, SEC.11. Amended by P.L.210-1999, SEC.1.
IC 16-28-8-5
Operation of facilities
Sec. 5. Unless a health facility is ordered to be closed within one
hundred twenty (120) days, the receiver shall operate the health
facility subject to the same standard and rate criteria that apply to all
health facilities licensed under IC 16-28-2.
As added by P.L.2-1993, SEC.11.
IC 16-28-8-6
Bond
Sec. 6. (a) Before beginning duties as a receiver, the receiver must
execute a bond, with one (1) or more sureties approved by the court,
to the effect that the receiver will:
(1) faithfully discharge the duties of the receiver while
operating the health facility; and
(2) obey the orders of the court.
(b) The health facility shall pay the cost of the bond required of
the receiver.
(c) Upon:
(1) the court's approval of the receiver's final report that the
conditions that presented a major threat to the patients in the
health facility have been corrected or that the health facility has
closed; and
(2) the receiver's compliance with the court's order made on the
final report;
the receiver and the surety on the receiver's bond are fully discharged
for all matters related to the final report.
As added by P.L.210-1999, SEC.2.
IC 16-28-8-7
Costs of receivership; receiver who is a state employee; state paid
cost of receivership preferred
Sec. 7. (a) The costs of the receivership shall be determined by the
court and shall be paid by the owner or operator of the health facility.
(b) If the receiver is a state employee, the state shall pay the
receiver's salary.
(c) Any cost of receivership paid by the state for the receivership
of a health facility is a preferred claim against the receivership estate.
The state may file a claim against the health facility or the health
facility's assets and resources for recovery of any administrative
expense incurred by the state under this chapter.
(d) Any asset or resource of the health facility may be used to:
(1) fund the cost of receivership; and
(2) reimburse any expenditure made by the state under this
chapter.
As added by P.L.210-1999, SEC.3. Amended by P.L.29-2002, SEC.3.