§ 131E-238. Temporary manager; powers and duties.
§ 131E‑238. Temporary manager; powers and duties.
A temporary manager appointed under this section:
(1) May exercise those powers and shall perform those dutiesordered by the court;
(2) Shall operate the long‑term care facility incompliance with State and federal laws and assure the safety of the residentsand the delivery of services to them;
(3) May operate the facility under a temporary license issued bythe Department in the event that the license of the original operator has beenrevoked or suspended or was never issued;
(4) Shall have the same rights as the respondent to possessionof the building in which the long‑term care facility is located and ofall goods and fixtures located in the building at the time the temporarymanager is appointed. If the court finds that between the time the petition isfiled and the temporary manager is appointed, the respondent has transferredassets for the purpose of frustrating the intent of this section, the court mayrequire the respondent to repay to the temporary manager the value of suchtransferred assets. The temporary manager shall take all actions necessary toprotect and conserve the assets and property of which the temporary managertakes possession, and the proceeds of any transfer, and may use them only inthe performance of the powers and duties set forth in this section and as maybe ordered by the court;
(5) May use the building, fixtures, furnishings, and anyaccompanying consumable goods in providing care and services to residents andto any other persons receiving services from the long‑term care facilityat the time the petition for temporary management was filed. The temporarymanager shall collect payment for all goods and services provided to residentsor others at the same rate and method of payment as was charged by therespondent at the time the petition for temporary management was filed, unlessa different rate is set by the State or other third‑party payors. Thetemporary manager shall owe a duty to the owner of the long‑term carefacility to protect and preserve, and to avoid the waste or diminution of, thebuilding, fixtures, furnishings, consumable goods, receipts, and other assetsof the facility and to prevent the use of those assets for any purpose otherthan the reasonable operation of the facility;
(6) May correct or eliminate any deficiency in the structure orfurnishings of the long‑term care facility that endangers the safety orhealth of residents, provided the total cost of correction of all suchdeficiencies does not exceed one thousand dollars ($1,000);
(7) Shall submit to the court a plan in accordance with G.S.131E‑239 for correction or elimination of any deficiency or deficienciesin the structure or furnishings of the long‑term care facility thatendanger the safety or health of residents and that are estimated to exceed onethousand dollars ($1,000), and shall carry out the plan with any modificationapproved by the court;
(8) May enter into contracts and hire agents and employees tocarry out the powers and duties created under this section, provided that thetemporary manager must notify the court and the respondent prior to enteringinto any substantially new contract obligating the respondent to pay more thanone thousand dollars ($1,000);
(9) Except as specified in G.S. 131E‑241, shall honor allleases, mortgages, and secured transactions governing the building in which thelong‑term care facility is located and all goods and fixtures in thebuilding of which the temporary manager has taken possession, but, in the caseof a rental agreement, only to the extent of payments that are for the use ofthe property during the period of the temporary management, or, in the case ofa purchase agreement, come due during the period of the temporary management;
(10) Shall have full power to direct, manage, and dischargeemployees of the long‑term care facility, consistent with applicableState and federal laws governing the employment of these employees;
(11) If transfer of the residents is necessary, shall cooperatewith the Department or local departments of social services or both in carryingout the transfer of residents to an alternative placement;
(12) Shall be entitled to and shall take possession of allproperty or assets of residents in the possession of the respondents. Thetemporary manager shall preserve all property, assets, and records of residentsof which the temporary manager takes possession and shall provide for theprompt transfer of the property, assets, and records to the alternativeplacement of any transferred resident. No owner, licensee, or administrator ofa facility under temporary management shall be liable for the waste,mismanagement, or other negligent or intentional wrongful act of a temporarymanager with respect to the property or assets of residents; and
(13) May be held liable in his personal capacity only for his owngross negligence or intentional acts. (1993, c. 390, s. 1.)