United States District Court, W.D. Oklahoma
CHARLES B. GOODWIN United States District Judge
March 4, 2019, the Court granted
Plaintiffs' oral request for the temporary appointment
of a receiver over Defendant CAH Acquisition Company 7, LLC,
and appointed Cohesive Healthcare Management Consulting,
LLC (“Cohesive') to serve in that role.
See Order of Mar. 4, 2019 (Doc. No. 47). Plaintiffs
have also moved in writing for the appointment of a receiver
and for injunctive relief. See Doc. Nos. 12-1, 13-1;
see also Doc. Nos. 29, 30, 37, 38, 46.
considered the parties' arguments and evidence presented
through filings and in two hearings in open court, the Court
concludes that ordering the continued appointment of a
receiver, as well as associated preliminary injunctive
relief, is warranted to ensure proper oversight over the
Hospital and safety of its patients. Specifically, the
primary purpose of the receivership shall be to achieve an
orderly transition of the operations of the Hospital to a
succeeding lessee/operator or, absent appointment of a
succeeding lessee/operator within a reasonable time, to
achieve an orderly conclusion of the Hospital's
operations. See Order of Mar. 4, 2019; Fed.R.Civ.P.
65, 66; Cox v. Sullivan, No. 14-CV-206-TCK-FHM, 2015
WL 5040039, at *1 (N.D. Okla. Aug. 26, 2015); Star Fuel
Marts, LLC v. Sam's E., Inc., 362 F.3d 639, 651
(10th Cir. 2004); Schrier v. Univ. of Colo., 427
F.3d 1253, 1258-59 (10th Cir. 2005). See generally SEC v.
Vescor Capital Corp., 599 F.3d 1189, 1194 (10th Cir.
2010) (noting that “the district court has broad powers
and wide discretion to determine relief in an equity
receivership” (omission and internal quotation marks
omitted)); 28 U.S.C. § 959(b) (prescribing that a
receiver appointed by a federal court “shall manage and
operate the property in his possession”
“according to the requirements of the valid laws of the
State in which such property is situated”).
Plaintiffs' motions (Doc. Nos. 12-1, 13-1) are therefore
GRANTED to the extent outlined below. The Extended Temporary
Restraining Order previously entered by the Court (Doc. No.
40) shall expire as outlined therein. The terms of this Order
shall remain in place until further order of the Court.
THEREFORE ORDERED, ADJUDGED, AND DECREED that:
1. Effective immediately, Cohesive is appointed as receiver
(the “Receiver”) of (a) CAH Acquisition Company
7, LLC (“CAH 7”), (b) all real and personal
property of CAH 7 of any kind or nature, including all
government-issued permits, certificates, licenses, and other
grants of authority (the “CAH 7 Assets”), as well
as (c) all personal property located upon and within the
property and facilities described as the “Hospital
Premises” in the Emergency Application (Doc. No. 12-1)
(the “Other Property”).
2. The Receiver shall post a bond and file an executed oath
as outlined in the Court's Order of March 4, 2019.
3. Defendant CAH 7 and its agents are ordered immediately to
surrender complete control of CAH 7, the CAH 7 Assets, and
the Other Property to the Receiver and its agents, to provide
the Receiver with all necessary keys, passcodes, passwords,
and all other methods of access to computers, equipment, and
other devices used for the benefit of the Hospital, to
provide uninterrupted access to and control over all email
and other IT systems currently used at the Hospital, as well
as all books, records, accounts, and documents relating to
the Hospital and the operations thereon, and to remit to the
Receiver all funds currently in possession of CAH 7 and its
agents that are income, revenues, rents, or other proceeds of
CAH 7, as well as all other CAH 7 Assets and Other Property.
4. CAH 7 and its agents shall pay to the Receiver, or agent
appointed by the Receiver, all funds received after the date
of this Order that constitute income, rents, revenues, and
other proceeds, including without limitation security
deposits and all funds of CAH 7 in any way related to the
operations of the Hospital.
5. CAH 7 and its agents shall immediately turn over to the
Receiver and its agents all electronic medical-record
information, books, records, security deposits, escrows,
leases, contracts, computers, and access to all IT,
financial, and other information relating to CAH 7, the CAH 7
Assets, the Other Property, and the operations of the
Hospital maintained in any form, including electronically,
and further including information regarding computers and
software programs used by the Hospital or by CAH 7, including
its agents, and as well as all administrator access codes,
user names, passwords, and other information or authorization
necessary to give the Receiver full access to all such
information relating to the Hospital.
6. Any and all other persons and entities in possession of or
having custody or control over any documents, books, or
accounting records relating to the operation of the Hospital,
including, but not limited to CAH 7 and its agents, shall
deliver them to the Receiver forthwith, and shall account for
and pay over to the Receiver any income, revenue, rents, or
security deposits related to services performed by or at the
Hospital in his/her/its possession. Included within these
records shall be all service contracts and utility bills, any
and all current or past operating statements related to the
Hospital, and any other documents maintained by CAH 7 or its
agents pertinent to the management and/or operations of the
7. Until further order of this Court, CAH 7 and its agents,
on notice of this Order, are hereby restrained and enjoined
from interfering in any way with the Receiver's access to
the Hospital, CAH 7, the CAH 7 Assets, the Other Property, or
with the Receiver's management of the Hospital or its
operations, and from terminating or cancelling any licenses,
National Provider Number, or Medicare Participating Provider
8. CAH 7 and its agents, on notice of this Order, are hereby
ordered to reasonably cooperate in the completion and filing
of such changes of information and other notices and filings
requested by the Receiver pertaining to the Hospital's
Medicare and Medicaid agreements, certifications, enrollment,
and licensure, including without limitation notices and
filings necessary to remove the current managing,
controlling, authorized, and delegated parties, officials,
and representatives relating to the Hospital, and
substituting the Receiver and its designees.
9. The Receiver is granted, without limitation, the power to:
a. take control and possession of CAH 7, the CAH 7 Assets,
the Other Property, and the Hospital, and to perform all acts
necessary and appropriate for the operation and maintenance
b. take and maintain possession of all documents, books,
records, papers, and accounts relating to CAH 7;
c. exclude owners, agents, servants, and employees of CAH 7
wholly from the Hospital, including by changing ...