Levi Hospital appointed receiver of Quapaw

A Garland County Circuit Court judge has appointed Levi Hospital System as the receiver of Quapaw House Inc. after finding the nonprofit in default of an October 2019 loan from Malvern National Bank.

Judge Marcia Hearnsberger, who granted the order appointing a receiver last week, said Levi Hospital System is an “experienced and qualified health care provider, is experienced in operating businesses similar to Quapaw House, and is willing to serve as receiver for the property.”

Levi will be granted possession of the property and have “full power and authority to operate, manage, and conserve the property,” the order states.

According to the order, MNB filed a verified motion and request for expedited consideration for the appointment of a receiver to take possession of, secure and administer the collateral of MNB consisting of certain real property and personal property, which includes the accounts receivable derived from the business of Quapaw House.

Pat McCabe, CEO of Levi Hospital, declined

to comment Monday on the matter until a later date.

According to the order, Levi Hospital will have the power and authority, but not obligation, to:

• Prepare and issue billings for all goods and services provided or performed by Quapaw House.

• Bill and collect for services rendered, charges, rents, room revenues, income, account receivables, insurance claim proceeds, real estate tax refunds, utility deposits and other revenues.

• Maintain all forms of appropriate insurance for the collateral of MNB against any form of loss.

• Employ administrative support, attorneys, security companies, billing clerks, accounts receivable clerks, accountants and other employees reasonably deemed necessary.

• Pay taxes that may have been or may be levied against the property and contest or appeal any real estate tax assessment or bill relating to the property.

• Establish bank accounts and utilize the tax identification number of Quapaw House.

• Receive all rents, income, room revenues, revenue from operations on the property, account receivable proceeds and all other proceeds from the property and business conducted on the property.

• Hire or retain any agents/employees necessary or appropriate to do any of the duties listed above without further approval of the court, including accountants, attorneys, medical billing and collection personnel, brokers, leasing agents and property managers.

• Manage the property under any and all existing agreements, licenses or permits currently in place between Quapaw House and any third party, or terminate those agreements and to negotiate directly with such third parties as may be necessary or desirable in the receiver’s discretion to retain or modify such agreements.

• Terminate or enter into vendor or other contracts pertaining to the property as receiver may determine in its reasonable judgment are necessary.

• Procure or maintain utility services for the property.

• Take possession of all cash and funds belonging to or for the benefit of Quapaw House.

• With prior approval of the court, manage, operate, lease, market, engage a broker, and sell some, all or substantially all the property of Quapaw House.

• Take other actions as may be reasonably necessary to manage, operate and conserve the property of Quapaw House.