(a)

1. (1) Arkansas Code § 20-10-902 describes the purpose for development of a mechanism for the concept of receivership to protect resident in long-term care facilities.

2. (2) Utilization of the receivership mechanism shall be a remedy of last resort and shall be implemented consistent with the criteria set forth in Arkansas Code § 20-10-904, to wit:

   1. (A) An emergency exists in a facility which threatens the health, security, or welfare of residents;
   2. (B) A facility is in substantial or habitual violation of the standards of health, safety, or resident care established under state rules or federal regulations to the detriment of the welfare of the residents;
   3. (C) A facility intends to close but has not arranged at least thirty (30) days prior to closure for the orderly transfer of its residents;
   4. (D) The facility is insolvent; and
   5. (E) The Department of Human Services has suspended, revoked, or refused to renew the existing license of the facility.

(b) The objective of any receivership is to:

1. (1) Restore a nursing home’s capability to meet resident needs; or
2. (2) If that is not feasible, to arrange for a transfer of ownership or closing of the home.