Ark. Code Ann. § 20-10-904: Grounds for appointment

The following circumstances shall be grounds for the appointment of a receiver to operate a long-term care facility:

(1) An emergency exists in a facility which threatens the health, security, or welfare of residents;

(2) 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) A facility intends to close but has not arranged at least thirty (30) days before closure for the orderly transfer of its residents;

(4) The facility is insolvent; and

(5) The Department of Human Services has suspended, revoked, or refused to renew the existing license of the facility.