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" mayinclude the costs of placing a receiver in a health facility and allreasonable expenditures and attorney's fees incurred by the receiverto operate the health facility while the health facility is inreceivership.
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 commissionerand the chairman of the council, request the attorney general topetition the circuit or superior court of the county in which a healthfacility is located to place the facility in receivership to protect thepatients 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 receivershipin 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        (2) The license of the facility has expired or been revoked.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 adequatearrangements have not been made for the orderly transfer ofpatients at least thirty (30) days before closing.
        (4) The facility is operating under extraordinary conditions thatpresent a major threat to the health, safety, security, rights, orwelfare of a facility's patients, including imminent abandonmentof 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Repealed
    (Repealed by P.L.179-1993, SEC.15.)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 stateemployee;
        (2) must possess the education and experience necessary, asdetermined by the director, to oversee correction of thedeficiencies of the facility;
        (3) must not have been found guilty of misconduct by anylicensing board or professional society in the state;        (4) must not have (or a member of the receiver's immediatefamily must not have) a financial ownership interest in thefacility;
        (5) has the powers and duties granted by the court to protect theinterests of the patients in the health facility, which may includeproviding for the orderly relocation of patients from the healthfacility and the refusal to admit new patients pending closure;and
        (6) must report to the director on the operation of the facilityand 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 onehundred twenty (120) days, the receiver shall operate the healthfacility subject to the same standard and rate criteria that apply to allhealth 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 mustexecute 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 whileoperating the health facility; and
        (2) obey the orders of the court.
    (b) The health facility shall pay the cost of the bond required ofthe receiver.
    (c) Upon:
        (1) the court's approval of the receiver's final report that theconditions that presented a major threat to the patients in thehealth facility have been corrected or that the health facility hasclosed; and
        (2) the receiver's compliance with the court's order made on thefinal report;
the receiver and the surety on the receiver's bond are fully dischargedfor 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 paidcost of receivership preferred
    Sec. 7. (a) The costs of the receivership shall be determined by thecourt 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 thereceiver's salary.
    (c) Any cost of receivership paid by the state for the receivershipof a health facility is a preferred claim against the receivership estate.

The state may file a claim against the health facility or the healthfacility's assets and resources for recovery of any administrativeexpense 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 thischapter.
As added by P.L.210-1999, SEC.3. Amended by P.L.29-2002, SEC.3.