(a) Under Health and Safety Code, §251.092, the department may request the attorney general to bring an action in the name and on behalf of the state for the appointment of a temporary manager to manage a facility if:
  (1) the facility is operating without a license;
  (2) the department has denied, suspended, or revoked the facility's license but the facility continues to operate;
  (3) the license denial, suspension, or revocation proceedings against the facility are pending, and the department determines that an imminent or reasonably foreseeable threat to the health and safety of a patient of the facility exists;
  (4) the department determines that an emergency exists that presents an immediate threat to the health and safety of a patient of the facility;
  (5) the facility is closing and arrangements for the care of patients by other licensed facilities have not been made before closure; or
  (6) the department determines a level three corrective action plan under §117.81(b)(6) of this title (relating to Corrective Action Plan) that includes appointment of an involuntary temporary manager is necessary to address serious or life-threatening conditions at the facility.
(b) After a hearing, a court shall appoint a temporary manager to manage a facility, if the court finds that the appointment of the manager is necessary.
  (1) The court order shall address the duties and authority of the temporary manager, which may include management of the facility and the provision of dialysis services to facility patients until specified circumstances occur, such as new ownership of the facility, compliance with the statute or this chapter, or closure of the facility.
  (2) If possible the court shall appoint as temporary manager an individual whose background includes administration of ESRD facilities or similar facilities.
  (3) Venue for an action under this section is in Travis County.
(c) A temporary manager appointed under this section is entitled to a reasonable fee as determined by the court in accordance with Health and Safety Code, §251.093.
  (1) The fee shall be paid by the facility.
  (2) The temporary manager may petition the court to order the release to the manager of any payment owed the manager for care and services provided to patients of the facility, if the payment has been withheld.
  (3) Withheld payments that may be released may include payments withheld by a governmental agency or other entity before or during the appointment of the temporary manager, including:
    (A) Medicaid, Medicare, or insurance payment; or
    (B) payments from another third party.

Source Note: The provisions of this §117.83 adopted to be effective July 6, 2010, 35 TexReg 5835