35-2-1103. Petition for receivership; hearing; parties; emergency order.

(a) The department may file a petition in the district court to appoint a receiver for a health care facility, if the facility:

(i) Is operating without a license or the facility's license has been suspended, revoked or not timely renewed; or

(ii) Presents a situation, physical condition, practice or method of operation that causes an imminent danger of death or significant mental or physical harm to its residents or patients.

(b) Service of process shall be made in any manner as provided by the Rules of Civil Procedure. If personal service cannot practicably or promptly be made as provided in the Rules of Civil Procedure, service may be made by delivery of the summons with the petition attached to any person in charge of the health care facility at the time service is made.

(c) The court shall hold a hearing on the merits of the petition not later than ten (10) days after the date the petition is filed.

(d) Following a hearing, the district court shall appoint the director of the department as the receiver if it finds by a preponderance of the evidence that any of the conditions in subsection (a) of this section exist.

(e) The court may appoint a receiver upon an ex parte motion when affidavits, testimony or any other evidence presented indicates there is a reasonable likelihood that any of the conditions in paragraph (a)(ii) of this section exist. Notice of the petition and ex parte order appointing the receiver shall be served in any manner as provided by the Rules of Civil Procedure and shall be posted in a conspicuous place inside the facility not later than twenty-four (24) hours after issuance of the order. A hearing on the original petition shall be held not later than five (5) days after the issuance of the ex parte order unless the health care facility consents to a later date or waives the hearing.

(f) Following any regular or ex parte hearing, the director of the department may designate a qualified person, experienced in health facility management, to act as the receiver. The designated person shall be free of conflict of interest with the health care facility that is in receivership.

(g) After the appointment of a receiver, the court shall conduct a hearing on the status of the receivership every six (6) months.