California Nursing Home Administrator License Practice Exam

When may a receiver be appointed for a facility?

1. A facility is cited for a class IV violation

2. A facility is located in an evacuation zone

3. A facility doesn't have enough money to provide care for residents

4. A facility receives a notice of a move-out from a resident

The correct answer is: A facility doesn't have enough money to provide care for residents

A receiver may be appointed for a facility primarily when there are financial difficulties affecting the quality of care provided to residents. This situation arises when a facility doesn't have sufficient funds to maintain operations and ensure that residents receive the care required under the law. The appointment of a receiver is a serious measure and generally occurs in circumstances where the facility is unable to meet its obligations, putting residents at risk of inadequate care. In the context of a nursing home facility, financial instability can lead to issues such as staff shortages, poor maintenance of the building, and insufficient supplies, all of which directly impact the welfare of the residents. By appointing a receiver, the state aims to safeguard the health and safety of these individuals by allowing an appointed individual to take control of the operations, ensuring compliance with care standards and financial viability. Other situations, such as being cited for violations, located in an evacuation zone, or a resident's notice to move out, do not inherently indicate a need for such an intervention. These scenarios may require different actions or support but do not directly relate to the financial and operational instability that necessitates the appointment of a receiver.