§ 44–1002.07. Termination of receivership.

(a) Except as provided in subsection (b) of this section, a receivership shall terminate when:

(1) The person who will assume control of the facility has been granted a current license by the Mayor and:

(A) The time period specified in the order appointing the receiver elapses and is not extended; or

(B) The court determines the receivership is no longer necessary because the grounds on which it was based no longer exist; or

(2) The facility is closing and all of its residents have been transferred or discharged.

(b)(1) Notwithstanding subsection (a) of this section, a receivership of a private facility shall not be terminated in favor of any person who was the licensee or administrator at the time a petition was filed under § 44-1002.03, or, in the discretion of the court, any person who is or was an affiliate of the licensee or administrator, unless he or she first:

(A) Reimburses the District government for any increase in Medicaid expenditures needed to finance the receiver’s bond premium under § 44-1002.05(c)(2), to pay the receiver’s fee under § 44-1002.06(h), or to correct deficiencies caused by the licensee’s or administrator’s own negligence; and

(B) Reimburses the District government for any amount it loaned the receiver for major repairs or improvements to the facility, or assumes an obligation to repay the loan and provides collateral or other assurance of payment deemed sufficient by the Mayor.

(2) The court may in addition require that, before a person specified in paragraph (1) of this subsection resumes control of a facility, he or she post bond in an amount it deems appropriate as security against future noncompliance with the law. If the receivership is not reinstated under subsection (c) of this section, the bond money shall be returned.

(c) Should it appear that, within 2 years after a receivership is terminated in favor of a person specified in subsection (b)(1) of this section, that person is not maintaining the facility in substantial compliance with all applicable laws, and should the court so find after granting notice and a hearing to all parties to the earlier receivership proceeding, the previous order appointing a receiver may be reinstated. A receiver thus reappointed may use all or part of any bond posted pursuant to subsection (b)(2) of this section to remedy the deficiencies.