Health Care Facilities

ORS 441.289
Powers and duties of trustee

A trustee appointed under ORS 441.281 (Petition for appointment of trustee):


May exercise any powers and shall perform any duties required by the court.


Shall operate the facility in such a manner as to protect the health and welfare of the patients.


Shall have the same rights to possession of the building in which the facility is located and of all goods and fixtures in the building at the time the petition for the appointment of the trustee is filed as the licensee would have had if the trustee had not been appointed.


Shall take such action as is reasonably necessary to protect and conserve the assets and property the trustee takes in possession, or the proceeds of any transfer thereof, and may use them only in the performance of the powers and duties set forth in this section and by order of the court.


May receive and spend the facility’s income and encumber its assets to the extent specifically authorized by the court and do all acts necessary or appropriate to promote the health and safety of the patients.


Shall have the power to maintain an action to reach the assets of the parent corporation if it appears to the court that the parent corporation is the actual controlling owner of the facility and that the named owner is not in control of the facility.


May use the building, fixtures, furnishings and any accompanying consumable goods in the provision of care and services to patients at the time the petition for the appointment of the trustee was filed.


Shall collect payments for all goods and services provided to patients during the period of the trust, at the same rate of payment charged by the facility at the time the petition for the appointment of the trustee was filed, unless a different rate is set by the court.


May correct or eliminate any deficiency in the structure or furnishings of the facility which endangers the health or welfare of the patients while they remain in the facility. However, the total cost of correction may not exceed $3,000 unless the court orders expenditures for this purpose in excess of $3,000 upon application by the trustee.


May make contracts and hire agents and employees to assist the trustee in carrying out the powers and duties described in this section, subject to approval by the court.


Except as provided in ORS 441.296 (Liability for rent or contracts), shall honor all leases, mortgages and secured transactions governing the building in which this facility is located and all goods and fixtures in the building of which the trustee has taken possession, but only to the extent of payments which, in the case of a rental agreement, are for the use of the property during the period of the trust, or which, in the case of a purchase agreement, come due during the period of the trust.


May direct, manage and discharge employees of the facility, subject to any contract rights they may have.


Shall pay employees at the same rate of compensation, including benefits, that the employees would have received from the owner, operator or other controlling person, except the trustee shall compensate employees only for time actually worked during the period of the trust and shall not be responsible for reimbursement for vacations or periods of sick leave. However, in no case shall a trustee compensate any employee of a facility in an amount which is less than the minimum amount required by law.


Shall be entitled to take possession of all property or assets belonging to patients that are in the possession of the long term care facility.


Shall preserve and protect all property, assets and records of patients of which the trustee takes possession.


May prohibit any person, including a licensee, from entering or remaining on the premises if in the opinion of the trustee the person is interfering or has materially interfered with the ability of the trustee to exercise the powers and duties under this section.


If the facility ceases to operate and closes during the period of the trust and any patient is transferred as a result, shall ensure that:


Transportation of the patient, the patient’s belongings and the medical record to the new location is provided.


Aid for locating alternative placements is available to the patient or the patient’s legal representative.


Each patient is physically and mentally prepared for transfer to avoid possible trauma due to the transfer.


Each patient or the patient’s legal representative is permitted to participate in the selection of the new placement.


Is an agent of the state for purposes of ORS 30.260 (Definitions for ORS 30.260 to 30.300) to 30.300 (ORS 30.260 to 30.300 exclusive) for which the Department of Human Services shall be assessed and the department may use the Facility Fund established under ORS 441.303 (Establishment of Facility Fund) to pay the assessment. [1981 c.868 §4; 1985 c.731 §28; 1987 c.428 §20; 1997 c.249 §140; 2009 c.539 §3]

Notes of Decisions

Where costs incurred by state court-appointed trustee are not incurred to remedy health or safety law violation, costs were not incurred to benefit or preserve bankruptcy estate and are not entitled to administrative expense priority. In re Allen Care Centers, Inc., 96 F3d 1328 (9th Cir. 1996)

§§ 441.277 to 441.323

Law Review Citations

18 WLR 135 (1982)

Chapter 441

Atty. Gen. Opinions

Licensing and phantom beds, (1970) Vol 40, p 171; a hospital's employing a licensed physical therapist as unauthorized practice, (1975) Vol 37, p 963


Last accessed
Jun. 26, 2021