135C.30 - OPERATION OF FACILITY UNDER RECEIVERSHIP.
135C.30 OPERATION OF FACILITY UNDER RECEIVERSHIP.
When so authorized by section 135C.11, subsection 2, or section
135C.12, subsection 1, the director may file a verified application
in the district court of the county where a health care facility
licensed under this chapter is located, requesting that an individual
nominated by the director be appointed as receiver for the facility
with responsibility to bring the operation and condition of the
facility into conformity with this chapter and the rules or minimum
standards promulgated under this chapter.
1. The court shall expeditiously hold a hearing on the
application, at which the director shall present evidence in support
of the application. The licensee against whose facility the petition
is filed may also present evidence, and both parties may subpoena
witnesses. The court may appoint a receiver for the health care
facility in advance of the hearing if the director's verified
application states that an emergency exists which presents an
imminent danger of resultant death or physical harm to the residents
of the facility. If the licensee against whose facility the
receivership petition is filed informs the court at or before the
time set for the hearing that the licensee does not object to the
application, the court shall waive the hearing and at once appoint a
receiver for the facility.
2. The court, on the basis of the verified application and
evidence presented at the hearing, may order the facility placed
under receivership, and if so ordered, the court shall direct either
that the receiver assume the duties of administrator of the health
care facility or that the receiver supervise the facility's
administrator in conducting the day-to-day business of the facility.
The receiver shall be empowered to control the facility's financial
resources and to apply its revenues as the receiver deems necessary
to the operation of the facility in compliance with this chapter and
the rules or minimum standards promulgated under this chapter, but
shall be accountable to the court for management of the facility's
financial resources.
3. A receivership established under this section may be
terminated by the district court which established it, after a
hearing upon an application for termination. The application may be
filed:
a. Jointly by the receiver and the current licensee of the
health care facility which is in receivership, stating that the
deficiencies in the operation, maintenance or other circumstances
which were the grounds for establishment of the receivership have
been corrected and that there are reasonable grounds to believe that
the facility will be operated in compliance with this chapter and the
rules or minimum standards promulgated under this chapter.
b. By the current licensee of the facility, alleging that
termination of the receivership is merited for the reasons set forth
in paragraph "a" of this subsection, but that the receiver has
declined to join in the petition for termination of the receivership.
c. By the receiver, stating that all residents of the
facility have been relocated elsewhere and that there are reasonable
grounds to believe it will not be feasible to again operate the
facility on a sound financial basis and in compliance with this
chapter and the rules or minimum standards promulgated under this
chapter, and asking that the court approve surrender of the
facility's license to the department and subsequent return of control
of the facility's premises to the owners of the premises.
4. a. Payment of the expenses of a receivership established
under this section is the responsibility of the facility for which
the receiver is appointed, unless the court directs otherwise. The
expenses include but are not limited to:
(1) Salary of the receiver.
(2) Expenses incurred by the facility for the continuing care of
the residents of the facility.
(3) Expenses incurred by the facility for the maintenance of
buildings and grounds of the facility.
(4) Expenses incurred by the facility in the ordinary course of
business, such as employees' salaries and accounts payable.
b. The receiver is not personally liable for the expenses of
the facility during the receivership. The receiver is an employee of
the state as defined in section 669.2, subsection 4, only for the
purpose of defending a claim filed against the receiver. Chapter 669
applies to all suits filed against the receiver.
5. This section does not:
a. Preclude the sale or lease of a health care facility, and
the transfer or assignment of the facility's license in the manner
prescribed by section 135C.8, while the facility is in receivership,
provided these actions are not taken without approval of the
receiver.
b. Affect the civil or criminal liability of the licensee of
the facility placed in receivership, for any acts or omissions of the
licensee which occurred before the receiver was appointed. Section History: Early Form
[C81, § 135C.30] Section History: Recent Form
84 Acts, ch 1136, § 1; 91 Acts, ch 107, §3; 2009 Acts, ch 41, §263
Referred to in § 135C.11, 135C.12