# Title 23 — Health and Safety

## Chapter 23-16.1 — Medical Hospital Receivership

### § 23-16.1-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:
1. "Department" means the department of health and human services.
2. "Health care facility" means those facilities licensed under chapter 23-16.
### § 23-16.1-02. Conditions for appointment of receiver.

If the department has revoked the license of a health care facility, or if the operator of a
health care facility has requested, the department may file a petition with the district court to
place the health care facility under the control of a receiver if necessary to protect the health or
safety of patients or residents at the health care facility. The court may grant the petition upon a
finding that the health or safety of the patients or residents at the health care facility would be
seriously threatened if a condition existing at the time the petition was filed is permitted to
continue. This finding may be based upon evidence concerning the physical plant or the
program and services offered by the health care facility, but not solely upon evidence that a
health care facility has been denied a license to operate as a health care facility or has had a
previously issued license revoked.
### § 23-16.1-02.1. Imminent threat to health or safety - Conditions for appointment of

receiver - Appointment of receiver.
If the department determines a situation exists which constitutes an imminent threat to
health or safety of the residents of a nursing facility, the department may take immediate control
of the nursing facility and appoint an interim administrator. Within ten days of taking control of a
nursing facility, the department shall petition the district court of the district in which the nursing
facility is located to establish a receivership. The court shall grant the petition if it finds the
department is substantially justified in concluding there was an imminent threat to life or health
of the residents. In making its decision the court shall consider the matters set forth in section
23-16.1-02, any matters that the department considered in reaching its decision, and any other
matters bearing on the ability of the nursing facility to provide for the health or safety of its
residents. If the court grants the petition, the court shall also reconfirm the appointment of the
interim administrator or direct the state health officer to choose another pursuant to section
### § 23-16.1-03. Any receiver reconfirmed or appointed pursuant to this section shall comply with

sections 23-16.1-03 through 23-16.1-05. Neither the department nor the court may terminate the
appointment of a receiver appointed under this section until the nursing facility has complied
with federal and state law and demonstrated management capability to ensure continued
compliance and the health and safety of the residents.
As used in this section, an "imminent threat to health or safety" means without intervention
one or more of the following will occur to the residents: death, loss of mobility, partial disability,
loss of motor skills, loss of speech, hearing, sight, or other ability to function within normal limits
for an individual of that age and condition.
### § 23-16.1-02.2. Closure of facility or removal of residents.

In the event of an emergency any receiver appointed under section 23-16.1-02.1 may
remove any or all residents of a nursing facility and close the facility if deemed necessary.
### § 23-16.1-03. Appointment of receiver.

The court shall appoint as receiver the state health officer who shall designate a qualified
individual, not employed by this state or its political subdivisions, or a nonprofit organization to
execute the receivership. The receiver appointed by the court shall use the income and assets
of the health care facility to maintain and operate the health care facility and to attempt to
correct the conditions that constitute a threat to the patients or residents. The receiver may not
liquidate the assets of the health care facility.

### § 23-16.1-04. Termination of receivership.

The receivership must be terminated when the receiver and the court certify that the
conditions which prompted the appointment have been corrected, when the license is restored,
when a new license is issued, or, in the case of an election by the owner or owners to
discontinue operation, when the patients or residents are safely placed or provided services in
the health care facility.
### § 23-16.1-05. Accounting.

Upon the termination of the receivership, the receiver shall render a complete accounting to
the court and shall dispose of surplus funds as the court directs.
